Results 1 to 30 of 2454

Thread: Euro Area

Hybrid View

Previous Post Previous Post   Next Post Next Post
  1. #1
    Throne Room Caliph Senior Member phonicsmonkey's Avatar
    Join Date
    Apr 2007
    Location
    Cometh the hour, Cometh the Caliph
    Posts
    4,859

    Default Re: The continuing battle against the inevitable Euro area default

    Quote Originally Posted by Papewaio View Post
    make it up as they go along and ignore all lessons learnt by other nations who have fused (UK,USA etc)?
    This - failure was not to be contemplated!

    In the CFA institute journal for July/August the point was made that the theory of optimum currency areas (Mundell, 1961) states that it is in the interests of a group of nations to form a currency union if and only if the mobility of the factors of production (labour and capital) within the proposed union is greater than the mobility without. This is to provide the economic flexibility to offset the loss of the ability for the individual nations' currencies to fluctuate.

    For a number of reasons that doesn't hold (and has never held) in the case of the Euro, and that situation has worsened since 2008 with capital being effectively nationalised. Hence the current crisis is almost unavoidable with economic imbalances arising, worsened by irresponsible fiscal decision-making.
    frogbeastegg's TWS2 guide....it's here!

    Come to the Throne Room to play multiplayer hotseat campaigns and RPGs in M2TW.

  2. #2
    master of the pwniverse Member Fragony's Avatar
    Join Date
    Apr 2003
    Location
    The EUSSR
    Posts
    30,680

    Default Re: The continuing battle against the inevitable Euro area default

    'So how will the EU handle a military junta attacking a democratically elected member state?'

    As always, MOAR POWER TO BRUSSELS

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Single Sign On provided by vBSSO