the corner office

a blog, by Colin Pretorius

Lessons from the euro crisis

An interesting take on the eurozone crisis from Tyler Cowen at Marginal Revolution. I've lifted the points I find most interesting, but it's worth reading the whole thing:

  • Don't borrow in someone else's currency.

  • Don't think that 'don't borrow in someone else's currency' is the only lesson. Last I checked the Netherlands was doing OK.

  • International coordination doesn't work very well unless the interests of the various countries are aligned in the first place. ... The EU, and the eurozone, is designed for vague statements of consensus that, when faced with real problems, don't get the job done.

  • ... it is wrong to blame 'welfare states,' but it is also wrong to let 'welfare states' off the hook altogether. We're learning a lot about how not all welfare states are created equal.

  • Don't have government regulators let the banking system treat all government securities as riskless assets.

{2011.11.12 09:27}

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