Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
No, the Euro was set up so that there was no constraint on the creation of current accounts deficit countries. Specifically, there was no mechanism by which current account surplus countries would be forced to repatriate that surplus.

Current accounts is the surplus/deficit that actually matters. This pathological obsession with inflation, government bonds and government spending is an Austrian-school cargo cult, not any form of economics conventionally recognised in the social sciences.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Feb 14th, 2012 at 06:37:44 PM EST
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