Buiter

In his research, Mr. Buiter returned to a theme that this column raised a week ago.

I also remain sceptical of Prof Buiter's proposed extension of the Bank's role to becoming a true "market-maker- of-last-resort" .

As Mr Buiter himself notes, public debt doesn't look all that bad relative to levels seen in the wake of major wars last century.

According to Mr Buiter, "the disaster scenario of sovereign defaults is no longer on the table except as a tail risk" .

As Willem Buiter of the London School of Economics puts it, only fiscal conservatives can use counter-cyclical fiscal policy well.

The business of issuing euro notes, produced at almost zero cost, is 'wildly profitable' for the ECB, Mr. Buiter wrote.

Willem Buiter is a Professor of European Political Economy in the European Institute, London School of Economics and Political Science.

That creates leverage that makes it look like a 'hedge fund on steroids, ' Mr. Buiter wrote.

Unlike Professor Buiter, I recognise that these could be valid arguments in the current circumstances.

Willem Buiter, former chief economist at the European Bank of Reconstruction and Development agreed.

Willem Buiter at the London School of Economics is not convinced.

Of course, Mr Trichet knows the future no better than Mr Bernanke, Mr Roubini or Mr Buiter.

Willem Buiter, chief economist at Citigroup, expects no huge shock from Europe.

Prof Buiter said this concern over moral hazard was overplayed.

(Willem Buiter is Professor of European Political Economy, London School of Economics and Political Science. )