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Euro Was Flawed at Birth and Should Break Apart Now April 2, 2012

Posted by proeconomia in Fiscal policy, Main, Monetary policy, News on Greece, On the crisis, Opinion.
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This is an interesting article, whether you agree with it or not. Worth your time reading it. The argument on artificial wage depression in Germany for boosting exports is not frequently heard and the author emphasizes it, among other things. However, the article is missing many other things that could have been instrumental in slowing growth in the EU. For example, the European subsidies did great harm in many instances in Greece because of the complete lack of any enforcement system on their implementation and monitoring. This is a problem of corruption and enforcement and has nothing to do with the common currency – however the institutional aspects of this practice are not mentioned at all in the article (or the large implications that they had, e.g. Germany was clearly willing to allow this kind of inflow of funds with no visible investment results since it boosted Greek consumption of imported goods).

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