Bank on it
Published 14/12/2011 | 05:00
• It seems to be generally accepted that the one way Europe can solve its present financial crisis is to have people spending money on goods and services.
To do that people have to have money available which, in turn, means the relative governments upping their expenditure thereby encouraging the private expenditure of ordinary citizens.
Unfortunately, because governments have no money to spend in this way, they have to borrow. As we all know now, this borrowing comes at too high a cost. Governments have gone too often to the economic well and borrowers are not sure they'll get their money back. Hence the present situation in Europe where there is an economic logjam.