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Barry Eichengreen boils the Euro Zone crisis down to the problems in Italy. Its debt is too large for current approaches to remedy. Italy's economy must grow at least 1% and inflation must be at least at 2% so that the sum is equal to or greater than the 3% that it pays for debt. The future of the Euro Zone is in the hands of Germany. It has to choose between two fixes: support for Euro bonds, or support for greater Euro Zone inflation.
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