IEA Economics Fellow Julian Jessop has commented in The Express on the impending monetary policy challenges facing the Eurozone.

Discussing the monetary union’s fiscal imbalances, Julian said:

“The single currency will only survive if the stronger members are willing to prop up the weaker ones, which requires large subsidies and debt sharing.”

Julian also argued that a long period of historically low interest rates was always likely to cause long-term challenges:

“The end of the long period of very low interest rates is now coming to an end and this will worsen the problems faced by high debt countries like Italy and Greece.

“Their borrowing costs have already shot up, after hawkish comments from the European Central Bank on Thursday.”

The full article can be read here.