Many politicians currently ask for the ECB to step in as Lender of Last Resort in order to solve the Euro crisis. However, St.Gallen Professor Simon Evenett argues that the discussion alone might already cause this strategy to fail. An interesting article about the role of expectations in monetary economics:
Have the Hawks Effectively Won the Lender of Last Resort Argument in Europe?
Europe’s monetary policy hawks may well lose the battle and yet win the war.
Swiss Economist 