Krugman walks us through some of the background and possible outcomes for the current economical crisis in Europe, and he ends up with two equally “impossible” end games, at an even probability.
Something will happen soon.
“I say it’s 50/50 … Either the Germans have to accept something they consider unacceptable, or they have to accept something, the breakup of the euro, that they consider something unacceptable.”
As for which way the Germans lean, he says, “They’re complicated … they’re not all as rigid as they are in official positions.”
Here’s the full interview.
