*  *  *  I am delighted to be addressing the IIB today. The organizers gave my talk the title "Major Challenges and Opportunities Facing the U.S. and Global Economy and Financial Markets" but then gave me only a half hour to discuss it!
The government-debt-to-GDP ratio for the euro area as a whole was 85.4 percent in 2010, well above the euro convergence criterion of 60 percent. This wide gap highlights the need for continued efforts to reduce fiscal deficits and the limited scope for expansionary fiscal measures for the euro area as a whole.