The Crisis and the Euro

The catastrophe Europe is living through stems not only from excessive public debt and ill-behaved governments, but also from a financial system that sold an absurd chimera: safe returns above the performance of economies growing at mediocre rates

Abstract

The problem with the euro is Europe. A group of countries with different levels of development and different fiscal policies is mired in a crisis that has affected
each of its members unevenly. Greece, Spain, and Italy are not Germany. On the contrary, they need the euro to depreciate against the dollar, the yen, the yuan, and other currencies in order to stimulate their export sectors and thus confront the crisis. Continue reading...