Larry Summers Says Euro Has Not Lived up to Expectations

January 21, 2015 Share Print 0

Former Clinton Treasury Secretary Larry Summers told CNBC on Wednesday that breaking up the euro zone would be a “serious mistake” but the single currency has not lived up to the hype.

The architects of the euro failed to realize that participating countries needed to be tied closer together, he said on CNBC’s “Squawk Box” from the World Economic Forum in Davos, Switzerland.

The monetary union needed to be associated with “much greater cooperation in fiscal policy … financial regulation … in standing behind banks,” the former Obama advisor said. “They let the politics trump the economics and they’re paying the price for that now.”

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.