Krugman: Who could have foreseen the huge problems the euro would eventually cause? Actually, lots of people., /but not Jonung/
In January 2010 two European economists /Lars Jonung and Eoin Drea/ published an article titled “It Can’t Happen, It’s a Bad Idea, It Won’t Last,” mocking American economists who had warned that the euro would cause big problems.
The only big mistake of the euroskeptics was underestimating just how much damage the single currency would do.
The point is that it wasn’t at all hard to see, right from the beginning, that currency union without political union was a very dubious project. So why did Europe go ahead with it?
Mainly, I’d say, because the idea of the euro sounded so good. That is, it sounded forward-looking, European-minded, exactly the kind of thing that appeals to the kind of people who give speeches at Davos.
Such people didn’t want nerdy economists telling them that their glamorous vision was a bad idea.
Paul Krugman 20 July 2015
Full text
RE: Currency union with political union is an even more dubious project.
See "ever closer union" - The United States of Europe
Lars Jonung at IntCom
The only big mistake of the euroskeptics was underestimating just how much damage the single currency would do.
The point is that it wasn’t at all hard to see, right from the beginning, that currency union without political union was a very dubious project. So why did Europe go ahead with it?
Mainly, I’d say, because the idea of the euro sounded so good. That is, it sounded forward-looking, European-minded, exactly the kind of thing that appeals to the kind of people who give speeches at Davos.
Such people didn’t want nerdy economists telling them that their glamorous vision was a bad idea.
Paul Krugman 20 July 2015
Full text
RE: Currency union with political union is an even more dubious project.
See "ever closer union" - The United States of Europe
Lars Jonung at IntCom
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