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Willem Buiter Argues Against Eurozone Breakup Worries
naked capitalism — ... Economist, and writes in a decidedly OxBridge style). And most of the noisy Euroskeptics are British (thus more properly Eurosceptics). But Buiter was also brought in at the 11th hour to advise Iceland as it was going into meltdown mode, so he has a keen appreciation of what can happen to little countries with little currencies that get themselves in a heap of financial trouble. As he sets forth, he thinks it is far wiser to remain in the euro fold than exit it. From Buiter: A recent (January 13, 2009) column in the Financial Times by John ...

Help Jake Understand: Is a Breakup of the Eurozone Likely?
EconomPic — ... reports: Restrictions on foreign financing have collapsed Spanish housing and consumer spending booms and sent unemployment to the highest rate in the European Union at 13.4 percent in November. S&P saw the risk of prolonged weak growth after the Spanish economy entered its first recession in 15 years during the fourth quarter. Counter-Point (no breakup) The counter-argument comes from William Buiter (hat tip Naked Capitalism): Three issues are being linked in this ...

Ireland needs help
FT Alphaville — ... Ireland continues hurtling down this road, which is close to default, the whole of Europe will be badly affected. The credibility of the euro will be badly affected. Then Spain might default, Italy and Greece,” he said. The conclusion appearing to be that Ireland will either have to default or pull-out of the eurozone altogether, as has been much speculated upon. But, like former MPC member Willem Buiter has recounted time and time again - pulling out of the eurozone doesn’t really make sense. Not only is it something that was never envisioned under the Maastricht treaty, but ...