Dr Doom: Euro must fall 30% to save Europe

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The euro needs to see a sharp fall of at least 30%, bringing it into line with the US dollar, or else the eurozone is "doomed", Nouriel Roubini has warned.

Speaking to Bloomberg TV at the World Economic Forum in Davos, Roubini said only a sharp fall in the single currency could restore stability and competitiveness to the stricken continent. The New York University professor known as ‘Dr Doom’, who correctly called the 2008 credit crisis, said: “I have been saying if the eurozone just does austerity – cutting spending and raising taxes - the recession is going to get worse. "What is necessary is for the value of the euro to fall sharply – at least a 30% depreciation, close to parity with the dollar. Unless you restore stock and flow, the...

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