Only Germany can save Europe now

Germany needs to show leadership to help rescue the eurozone, which needs both monetary and fiscal policies to support its recovery.

The European Central Bank ramped up its battle against deflation overnight; however, without help from Germany it is a battle that the ECB is unlikely to win -- at least not anytime soon. Despite the actions by the ECB and strong comments from president Mario Draghi, it will be fiscal rather than monetary policy that will eventually turn things around.

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