Lessons from the Euro Crisis

Arvind Subramanian has a nice piece at Project Syndicate about lessons for economists from the Euro crisis. One lesson which he highlights is that Germany has in some ways benefited from the crisis. First, as the safe haven in the euro-zone, their borrowing costs are really low. Second, because their currency is hitched to their southern neighbours, they have a weaker currency than they if they had retained the Deutschemark. But are the Germans willing to make the fiscal transfers necessary to keep the euro-zone going?


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