Nouriel Roubini: The problem is that the ECB is going to do more to backstop the banks and the financial system, but for a number of legal and institutional reasons, the European Central Bank is not going to become a last resort lender for the sovereigns. Unlike the Federal Reserve where there is a dual mandate, growth, inflation and financial stability, the ECB has only one mandate, that of price stability. There are legal and institutional constraints in the willingness and ability of the ECB to play a greater role.
Yes, they are going to play a greater role, but the fiscal, sovereign and financial and banking strains in the Eurozone are going to remain severe. There is going to be only partial willingness of the ECB to address them.
Nouriel Roubini nicknamed Dr. Doom and lately Dr. Realist by CNBC , is a professor of economics at the Stern School of Business, New York University and chairman of RGE Roubini Global Economics, an economic consultancy firm . Prof. Nouriel Roubini A world-class economist who offers an unflinching look at the global meltdown and distinctive insights into its course going forward. His research on financial crisis in emerging economics has yielded a unique and now vindicated approach to future collapses. Roubini speaks on the global economic outlook and its implications for the financial markets. From his analysis of past collapses of emerging economies, he has identified common factors that support his predictions of crisis in the US and world markets. He has held several high-level advisory positions in the US government and international finance organisations, published numerous policy papers and books on key international macro-economic issues and is regularly cited as an authority in
