Wharton’s Siegel: Europe Will Have to Devalue Euro to Save It

“Crisis-ridden Europe will have to weaken the euro against the dollar in order to save the economy, says Wharton finance professor Jeremy Siegel.

The European Central Bank has flooded the economy with liquidity to keep financial systems afloat and stave off the debt crisis.

Measures have included making low-cost loans available to banks so they’ll lend to even stepping in directly and injecting banks with liquidity, a tool known as quantitative easing

Devaluing the euro would help even more, as it would make servicing debts easier and exports more competitive outside of the continent and fuel more growth in hard-hit countries like Greece, Siegel says.”