Author (Person) | Feldstein, Martin |
---|---|
Series Title | Financial Times |
Series Details | 17.2.10 |
Publication Date | 17/02/2010 |
Content Type | News |
Commentary feature in which author suggest that the rest of the eurozone could allow Greece to deal with its serious economic situation by taking a temporary leave of absence from the eurozone with the right and the obligation to return at a more competitive exchange rate. The European economic and monetary union is doubly flawed. First, it forces diverse countries to live with a single interest rate and exchange rate that cannot be appropriate for all members. Second, combining a single currency with independent national budget policies encourages fiscal profligacy. The Greek situation is a manifestation of these flaws. If European political leaders nevertheless want to preserve the current system, allowing a temporary exchange rate reset for Greece may be the best option. |
|
Related Links |
|
Countries / Regions | Europe, Greece |