An article recently published in the German newspaper Die Welt on the U.S. and European debt crisis features comments made by Brattle principal and Nobel Laureate Daniel McFadden.
The article, “Economics Nobel Prize Winners Agree: U.S., Europe Sliding Into ‘Lost Decade’,” shares highlights from a recent gathering of 17 Nobel Prize recipients for the Nobel Laureate Meeting, held in Lindau, Germany. Brought together to debate crucial worldwide issues, the Nobel Laureates all agreed that the debt crisis could prove to be severely detrimental to both the United States and Europe. They urged that action must be taken by political leaders to win back credibility from consumers, business leaders, and financial markets.
Discussions from the meeting warned that if action is not taken soon, the Euro Zone may eventually fall apart. Dr. McFadden, recipient of the 2000 Nobel Prize in Economics, believes that Germany’s role is crucial to the future of the Euro Zone. Europe must “build up a stable fiscal system that makes effective control possible,” Dr. McFadden explains.