Why is the Euro Still Alive?
Many commentators have been predicting the death of the euro since the Eurozone crisis started over three years ago. But many commentators have underestimated the ability of the Eurozone to plod along and kick the problem into the future. The Eurozone is beset by problems, but politicians are playing for time - they are nursing weak economies (and their banks) along in the hope that economic growth will return, that asset prices will recover, and that economies will miraculously recover their former vim. How long can they do this for? Maybe a decade or more. However, if the PIIGS are still weak in several years time, the euro could well come to an end. Click here to read Barry Eichengreen's recent op-ed on the future of the Eurozone.