Tue Nov 16th, 2010 at 06:39:34 AM EST
Why should Greece, Ireland, Portugal, and maybe later Spain and Italy be tortured like this?
It might take a year or two to exit the euro, but I now believe it would be better for these five to exit rather than lay waste their economies and social programs in futile attempts to be able to borrow money they can't print.
Arguably the Baltic states, too, should have exited the ERM rather than suffer double-digit unemployment as they are doing now. Nor does the expansion of the euro in 2014-15 seem to be a good idea.
Monetary union is not feasible without fiscal union, which in turns requires political union, which has been stalled for most of the past decade (since the introduction of the euro, probably not coincidentally).
A core rump of France, Germany, Benelux, Austria, and Finland may be all that is practical to stay in the euro in the long term.