In an interview with Bloomberg Television’s Street Smart, David Blanchflower, the Bruce V. Rauner Professor of Economics at Dartmouth, discusses the impact of the economic plan in Cyprus that threatens to seize part of individuals’ savings.
Blanchflower notes that the problems in Cyprus could have been avoided, he says. “They should have been restructuring the banks, putting money in, sorting the thing out quietly, to ensure there wasn’t this ridiculous headline.”
The concern in Europe, says Blanchflower, is that the chances “of a breakup are greater because they don’t look like they can organize a little tiny problem.”
Watch the full interview, broadcast on 3/18/13 on Bloomberg Television.