This is a joint post with Amar Bhattacharya of the G-24
It is more obvious every day that Europe cannot save itself. A meltdown in Europe would not only hurt Europe and the United States. It would also deal a blow to people’s livelihoods everywhere, with high costs especially to people living close to the margin in the developing world. The blow would hurt right away as trade, remittances and commodity prices collapse. And it would continue to hurt over the next two years and more, requiring a long slow slog of the United States and Europe out of stagnation, recession or worse, and knock-on effects in China, Brazil and other big emerging markets that until recently were powering global demand.