Convertibility Risk: Acknowledged but not addressed

Reblogged from Yanis Varoufakis:

Further to my previous post on Mr Draghi's recent undermining of the Office of ECB President, Gavyn Davies of the FT penned the following line: "It is risky for a central banker to acknowledge that the payments system on which the currency stands may not be fully credible. Mr Draghi could simply have repeated the old line that the operation of the Target 2 system is enough to ensure that the euro can never fall apart.

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