Last night the Euro summit went into over time, with Monti and Rajoy staging an "occupy" movement until they received increased access to Euro-zone funds (see "Merkel concession…"). Will this help to halt the "slow motion bank run" developing in Spain and Italy (see the collected articles discussing the evolution of the banking crisis over the past weeks). Or will the extension of more credit to Spain and Italy ultimately bring down the solvent nations of Europe? Or, as Krugman-Layard argue, does the solution to the Euro zone crisis simply require a new round of massive Keynesian policy?
