[Over at Equitable Growth]: The current and the greater onrushing disaster that is macroeconomic policy in the eurozone is, in my opinion, the result of two things:
Setting up a Single currency in the region much broader than any optimum currency area.
Abysmal macroeconomic management by would-be economic hegemons that do not understand that system management needs to keep him employment high and thus make adjustment easy.
Even if dismantling the eurozone is not possible, transferring authority for North Atlantic macroeconomic management as a whole out of Europe is possible.
Greece and Europe: Is Europe holding up its end of the bargain? No: "Is the euro zone’s leadership delivering the broad-based economic recovery that is needed to give stressed countries like Greece…:
…a reasonable chance to meet their growth, employment, and fiscal objectives?…. Unfortunately, the answers… are… obvious… (1) the weak performance of the euro zone as a whole; and (2) the highly asymmetric outcomes among countries within the euro zone…. In late 2009 and early 2010 unemployment rates in Europe and the United States were roughly equal, at about 10 percent of the labor force. Today... the unemployment rate in the euro zone is more than 11 percent... a very large share of... younger workers; the inability of these workers to gain skills and work experience will adversely affect Europe’s longer-term growth potential…. [READ MOAR]