Euro crisis: “The worst, I fear, still lies ahead.”

In a recent column in the FT, Wolfgang Münchau asked an interesting question [free reg req] The markets have concluded that the eurozone crisis has ended. Several politicians said that they, too, believed that the worst was over. Complacency is back. I recall similar utterances in the past. Whenever there is some technical progress – an umbrella, a liquidity injection, a successful debt swap – optimism returns. If you think the European Central Bank’s policies have “bought time”, you should …

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