From the start, people should have realized that the euro was doomed to failure. Here’s what we can learn from this.
- Having the same fiscal policy but different sovereign policies doesn’t work. Much of Europe uses the same fiscal policy; the ECB and the euro. However, their problem is that sovereign policy is different. This doesn’t make sense.
- One monetary policy, but multiple debts. If you want a true union, you need one country. In one country, there is one national debt, and one currency. The problem with Greece is that their debt is their own problem, while they don’t have the ability to print their own money.
What lessons do you think we can learn from this?