map of Europe; blue: Eurozone, green: monetary agreement with the Union, purple: Euro as currency (outside of Eurozone), orange: ERM II, lightgreen: currency pegged to Euro, red: members of Union outside of Eurozone or ERM II; language: Hungarian (Photo credit: Wikipedia)
This is an outstanding, must-read article from top Oxford economist, Simon-Wren Lewis (SRL). Check it out!
via mainly macro: Eurozone delusions.
Wren-Lewis argues that the Eurozone is in major crisis because of ineffective monetary policy not because of Southern European economies, like Greece. SRL blames Germany, who is destabilizing Europe – either through naivety or deliberate greed on Germany’s part.
The solution is suspending the Stability and Growth Pact (SGP), and preferably by a coordinated fiscal stimulus. Consensions to France is not likely to be enough.
Whilst SWL blames Germany for causing the crisis, he equally rounds on Europe’s leaders for not standing up to Germany.