Niall Ferguson and Nouriel Roubini: Berlin is Ignoring the Lessons of the 1930sRoundup: Historians' Take
Niall Ferguson is a British historian and Nouriel Roubini is an American economist.
Is it one minute to midnight in Europe?
We fear that the German government’s policy of doing "too little too late" risks a repeat of precisely the crisis of the mid-20th century that European integration was designed to avoid.
We find it extraordinary that it should be Germany, of all countries, that is failing to learn from history. Fixated on the non-threat of inflation, today’s Germans appear to attach more importance to 1923 (the year of hyperinflation) than to 1933 (the year democracy died). They would do well to remember how a European banking crisis two years before 1933 contributed directly to the breakdown of democracy not just in their own country but right across the European continent.
We have warned for more than three years that continental Europe needs to clean up its banks’ woeful balance sheets. Next to nothing has been done. In the meantime, a silent run on the banks of the eurozone periphery has been under way for two years now: cross-border, interbank and wholesale funding has rolled off and been substituted with European Central Bank financing; and "smart money" – large uninsured deposits of wealthy individuals – has quietly departed Greek and other "Club Med" banks.
But now the public is finally losing faith and the silent run may spread to smaller insured deposits...
comments powered by Disqus
- The Anthropocene epoch: scientists declare dawn of human-influenced age
- ‘No Vacancies’ for Blacks: How Donald Trump Got His Start, and Was First Accused of Bias
- New Yorker profiles activist who's drawing attention to lynchings
- Wisconsin GOP senator wants to replace history professors with Ken Burns videos
- UT removes Confederate inscription that it previously said would stay
- NYT publishes historians' plea for the revival of political history
- Some Ohio University professors ditch the textbooks, and the prices
- Renowned Israeli Holocaust Historian: ‘If I Were a British Jew, I’d Be Worried’
- Heather Ann Thompson pries loose the long-kept secrets of Attica in her new book
- Lonnie Bunch remembers his first day on the job as director of the new black history museum