ALL BLOG POSTS
In my earlier post The Euro - A Fatal Conceit I argued that had the euro not be introduced and had we instead had freely floating exchange rates then "European taxpayers would (not) have had to pour billions of euros into bailing out Southern European and Eastern European government". Said in another way had we not had the euro then there would not have been a European "debt crisis" or at least it would have been significantly smaller.
Imagine that the euro had never been introduced and we instead had had freely floating European currencies and each country would have been free to choose their own monetary policy and fiscal policy.
A history of political dysfunctionality, corruption, military coups, military conflict with a neighboring country, large current deficits and weak fiscal management.
This week I spoke at Camp Alphaville in London. It was good fun. Among other things I had great fun arguing with my good friend Lorcan Roche Kelly about Greece. As usual Lorcan and I do not agree on anytihing.
Have a look at the latest numbers from Hypermind's prediction market on the likelihood of Greece leaving the euro in 2015.
It has been characteristic about the Great Recession that so relatively few countries have defaulted given the scale of the financial distress and the slump in economic activity. But it now seems to be changing. Greece this weekend moved dramatically closer to a sovereign default and the Ukrainian government has signaled that it could effectively default in July.
In the future I will be writing a weekly column for the Danish business daily Børsen. The first column appears in today's edition of the newspaper (you can read the article in Danish here). International news outlets and newspapers interested a syndication deal on my new weekly column are welcome to contact me (firstname.lastname@example.org).