How should the European Union help out Greece? By letting inflation rip, says Thomas Straubhaar, president of the HWWI economic institute in Hamburg, Germany.

Allowing inflation to soar would reduce the real burden of the huge nominal debts that have been run up by Greece and other European countries. Of course, diluting the euro might be seen as a desperate remedy to these countries’ problems, but, as Straubhaar points out, there are no good options in this predicament.

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