The problem is the only countries to really benefit from the Euro are northern European industrial economies that were very efficient to begin with. By joining the Euro, they lock in their currencies at a artificially low level, sort of like what China is accused of doing. So they export the hell out of everyone else and their currencies don't appreciate. Everyone else locked their currencies at ar artificially high level, thus their own real growth is enemic and can't be fixed by currency adjustment. But they create the pretense of better times all around by borrowing.
Now the Germans whine and bitch about having to bail everyone else out. But the problem is the only reason why everyone comes to Germany for bailout is because Germany has everyone else's money, thanks to the locked currency.
Did I miss anything?
Now the Germans whine and bitch about having to bail everyone else out. But the problem is the only reason why everyone comes to Germany for bailout is because Germany has everyone else's money, thanks to the locked currency.
Did I miss anything?
