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26 Mar 2013
Forex Flash: Many continue to underestimate the political will behind EMU - BBH
FXstreet.com (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman believes that many observers seem to chronically underestimate the level of political will of the European elites for EMU to succeed.
He notes that as Fed Chairman Bernanke observed, there are no ideologues in a crisis. Chandler adds that European officials look willing to sacrifice many sacred cows on the altar of EMU. He believes that it is an evolving situation, and as more institutional capacity is innovated, the range of the policy response can be enlarged. Further, he notes that there remains among the commentariat class a profound skepticism of the EMU's viability, especially it seems in the Anglo-American traditional and social media. He finishes by writing, “Many thought Greece was going to be jettisoned in 2011 and 2012. Some gave it weeks or months to survive a year ago. They greet each problem and official misstep with a cry that the end is nigh. Yet there is no Plan B and without a compelling alternative vision, Plan A persists.”
He notes that as Fed Chairman Bernanke observed, there are no ideologues in a crisis. Chandler adds that European officials look willing to sacrifice many sacred cows on the altar of EMU. He believes that it is an evolving situation, and as more institutional capacity is innovated, the range of the policy response can be enlarged. Further, he notes that there remains among the commentariat class a profound skepticism of the EMU's viability, especially it seems in the Anglo-American traditional and social media. He finishes by writing, “Many thought Greece was going to be jettisoned in 2011 and 2012. Some gave it weeks or months to survive a year ago. They greet each problem and official misstep with a cry that the end is nigh. Yet there is no Plan B and without a compelling alternative vision, Plan A persists.”