Thursday, October 4, 2012

The Euro, bad idea

Steve Keen has one of the clearest descriptions of why the Euro currency was doomed from the beginning.

His succinct synopsis is:

A currency requires a nation, and there is no nation called Europe – nor will there ever be.

Paul Krugman has said much the same thing.  There is a thread in neoclassical economics which has examined "Optimal currency areas" and Europe is far too large, divergent, and not part of a unified fiscal regime according to that analysis.

Keen also points to Wynne Godley, who denounced the Maastricht Treaty back in 1992, predicting what has happened today.





No comments:

Post a Comment