Traders work on the floor of the New York Stock Exchange during morning trading in New York City.
Traders work on the floor of the New York Stock Exchange during morning trading in New York City. - 
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Jeremy Hobson: Our regular Monday guest Julia Coronado. She is chief economist with the investment bank BNP Paribas and she's with us live this morning from Washington. Good morning.

Julia Coronado: Good morning.

Hobson: So Julia, this plan is emerging -- I know it's still sort of in the rumor phase at this point -- but is it making you feel any better about the European debt crisis?

Coronado: There's certainly a lot of credible elements to the plan, and each of the elements addresses some of the key concerns. But the big question, of course, is the ability -- the political wherewithal -- to get such a plan passed. And that's been the question all along -- do European policy makers have the ability to get these kinds of plans through their own countries?

Hobson: Well, we've heard plan after plan, it seems like. As an economist looking at this, do you have a plan? Is there something that you think would just solve this if only they could pass it?

Coronado: Well again, there's lots of great ideas. And this plan that's been put forward has a lot of very good ideas. We've done debt restructurings in the past, we've done bank recapitalizations in the past. So we have the toolbox, it's just a matter of whether what the market is really looking for is signs that European countries are willing to come together at this point.

Hobson: I'm glad you brought up the phrase "come together," because there's a situation going on where you are in Washington where we've got the possibility of a government shutdown by the end of this week if the two sides can't agree on a short-term spending bill. How big of a concern is that for economists like yourself?

Coronado: You know, these things we used to take for granted -- that surely they'll get these things done before the deadlines. But given the debt-ceiling debacle earlier in the summer, investors are really a lot more skittish about these political risks and these political events. So unfortunately, I think politicians are playing with fire -- and they haven't quite realized that yet.

Hobson: Julia Coronado, chief economist with the investment bank BNP Paribas, thanks as always.

Coronado: It's my pleasure.

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