Dr Krugman said EMU had lured Spain into a debt bubble and left the country exposed to an "asymmetric shock" with no defence. "If Spain had had its own currency, that currency might have appreciated during the real estate boom, then depreciated when the boom was over. Since it didn't and doesn't, however, Spain now seems doomed to suffer years of grinding deflation and high unemployment." He wants higher inflation to rescue eurozone deflators from their trap. So does the IMF, implicitly. But who in Europe will or can take that decision?