by Calculated Risk on 12/18/2011 07:45:00 PM

From the Financial Times: Draghi warns on eurozone break-up

Here is the transcript of the interview with ECB president Mario Draghi. A few excerpts:

Financial Times: ... these austerity programmes are very harsh. Don’t think that some countries are really in effect in a debtor’s prison?

Mario Draghi: Do you see any alternative?

FT: They could leave the eurozone?

MD: ... Leaving the euro area, devaluing your currency, you create a big inflation, and at the end of that road, the country would have to undertake the same reforms that were due to begin with, but in a much weaker position.

There are alternatives, as an example see Tim Duy's Europe Still Heading For Collapse

This sounds like "an endless vista of austerity", and that will not survive the polling booths for long.

Earlier:
• Summary for Week ending Dec 16th
• Schedule for Week of Dec 18th
• Ten Economic Questions for 2012