During an interview at the Davos World Economic Forum, economist Nouriel Roubini, aka Dr. Doom, said that without “massive monetary easing” from the European Central Bank the Eurozone is not likely to escape its continuing debt crisis. Greece is the problem right now, but as long as the Eurozone follows its current austerity policies the threat to other countries gets worse.
Roubini told CNBC, “There’s a severe recession in the periphery of the euro zone. Less austerity, more growth, that’s what the euro zone needs today.” The economist also noted that the euro needs to weaken by 20%-30% to help the weaker Eurozone countries get out of their debt crisis. So far, Germany — the strongest of the Eurozone economies — has succeeded in resisting any devaluation of the euro.
Roubinin also said that simply printing more euros won’t solve the Eurozone’s problems.