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European Tribune - The "Euro Crisis" - Both more and less than meets the eye
The €-zone as a whole has no structural economic problem that it is not fully within the collective power of its members to solve.
Specificall, the Eurozone as a whole has balanced trade, its currency is a globally-hard fiat currency, and it has a negligible amount of foreign-denominated debt.

The EU as a whole is a different beast - peripheral countries outside the Euro have to manage an exposure to the Euro, much like dollarised economies in Latin America, while being hamstrung by the single market rules and in most cases a commitment to the toxic Maastricht Convergence Criteria in order to join the Euro on a short schedule. This is not impossible to manage, but when mismanaged it can blow up spectacularly, as in Argentina or in the Baltic states.

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010

by Migeru (migeru at eurotrib dot com) on Thu Nov 18th, 2010 at 05:59:55 AM EST

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