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U.S. President Barack Obama’s administration has been trying to force Germany to assume responsibility for financially weak governments and banks in the euro region, giving advice that’s unwise and reflecting a lack of knowledge about the sources of the crisis, Glenn Hubbard, an economic adviser for Republican presidential candidate Mitt Romney, said in the Handelsblatt newspaper.
Obama’s advice to Germany and Europe to focus on short-term economic stimulus to achieve longer-term growth goals is as flawed as his own economic policy, Hubbard, dean of Columbia University’s Graduate School of Business, said in an opinion piece in the newspaper.
Europe’s debt crisis is a crisis of confidence, Hubbard said. Confidence in sound public finances over the long term is a prerequisite for economic growth and creates scope for short- term emergency programs, he said.
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