Steil: ECB Limitations in Addressing Eurozone Crisis

CFR's Senior Fellow and Director of International Economics Benn Steil discusses the ECB's role and limitations in mitigating the eurozone debt crisis. Steil says European Central Bank President Mario Draghi's statement that the ECB will not act as a lender of last resort to governments may come back to haunt him. "If the markets are concerned that the ECB will not at least provide a political backstop for the eurozone leadership" he cautions, "that could lead to a total boycott of Spanish and Italian government debt, which could be a catastrophe."