Monthly Archives: February 2018

Europe’s Crisis and the Rigidity of Currency Unions / Europas Krise und die Rigidität von Währungsunionen

A guest commentary by Henry Kaspar Kantoos‘ and my articles  on whether insolvency or illiquidity concerns are driving the euro crisis have provoked a number of reactions, both here and in other blogs. This is an attempt to reply to the main criticisms and counter-claims. 1. „As long as there is liquidity, solvency does not really matter“ This is Ryan Avent’s …

It’s Not Just the ECB / es ist nicht nur die EZB

A guest commentary by Henry Kaspar [with update] Paul Krugman and other commentators are singing the euro’s swan song, treating the disorderly break-up he euro area as a quasi fait accompli. Moreover, Krugman writes a first draft for the history books: Let’s just say that the euro was an inherently flawed idea that can work only given a strong European economy and …