Economists agree that countries should only have a monetary union if there is also a fiscal, economic, and political union. If you have a single currency, governments cannot print money to cover their debts, nor can they devalue their currency to regain competitiveness. Arguably, the EMU and European Union are unions with economic, political, and even fiscal elements. They, however, miserably fail to offer the necessary mechanisms to compensate for not having monetary sovereignty. Continue reading
Tag Archives: Greece
Why Greece must leave the Eurozone
Greece must leave the Eurozone. The only alternative would be to set a lethal precedent of using a public referendum as a strategic negotiation tool. It would blow up the Eurozone as it critically offends Spanish, Italian, German, and Latvian electorates. Leaving the Eurozone would finally put the power with the people, where it belongs, and enable the Greek people to decide what their story for the future will be. Continue reading
The Greek Euro problem in one picture
This week will be a turbulent one for the Eurozone. Greece will certainly default again on its debt, at least partially, after a first default in 2011. Here’s the cause of the problem in one picture:
Why politicians should be honest about the costs of the Euro
Today, Mark Rutte acknowledged that he broke one of his election promises. Right before the elections he said, quite literally, that Greece would not receive another Euro, and that the Greek had to sort out their own mess. Today, a new agreement broke those promises. Continue reading
