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Because the point of a supernational central bank with a mandate to recycle CA surpluses is to make sure that national central banks stick to a policy of defending against appreciation. Even in the face of the temptation to revalue and ride a bubble of fake prosperity.

And following such a policy would powerfully benefit the economic stability and growth prospects of member states, aside from the effects of Seuro bonds. The rump EU, deprived of lucrative southern peripheral targets for its manufacturer's vendor finance schemes, would likely turn on the weakest state remaining in the Euro. This would increase the centrifugal forces inside the Euro zone and promote additional flight out, if not to the Seuro zone.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Sep 20th, 2013 at 03:45:20 PM EST
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