What is certain, most of the actions needed to strengthen EMU calls for trust. A confrontational approach would be detrimental. Much can be done at the level of the European Institutions – Parliament, Council, Commission – to make them better instruments of a genuine Union, rather than a collection of states.
And for many, including many economists, this means having the Federal Reserve maintain its zero interest rate policy or further still, engage in a second round of quantitative easing – now called QE2. Some are even suggesting these actions are necessary for the Federal Reserve to comply with its statutory mandate.