President Obama told a crowd of donors in Seattle Thursday that the eurozone is “in a difficult state, partly because they didn’t take some of the decisive steps that we took early on in this recession.”
Obama did not specify the steps America took that prevented it from undergoing the monetary-political crisis affecting the eurozone, which most economists ascribe to the mismatch between a currency that spans 17 countries and fiscal policies that do not.
However, a White House official later clarified the president’s remarks. “A senior administration official said some examples included the United States’ early stress tests on banks, requirements that banks bolster their capital cushions and an aggressive early response by the Federal Reserve, the U.S. central bank,” Reuters reported.
Yet none of those policies—which are associated with combating financial risk and illiquid financial systems—relate to the underlying monetary and fiscal dilemma facing Europe.