Author: Joseph E. Stiglitz
Review by: Brian, Athy
The convenience of having the Euro has been a bonus for those travelling and doing business between the different countries of the Euro-zone. It has allowed for the growth of prosperity around Europe, brought less developed states closer to the level of the more developed states and promoted a harmonious relationship between them. This was how things were envisaged when the single currency started out. However, when we look back now, we see that the picture is very different. In fact, many of these stated benefits have gone in the other direction. The Italian economy has not grown since it joined the Euro, the Greek economy has gone into complete reverse and the Irish people have been forced to take on the debts of private bankers. What the Euro has singularly failed to do is to allow countries to adequately respond to economic down-turns. When a country has its own currency, it can adjust to to the vagaries of market turbulence. But being part of the Euro actively precludes this. Nobel Prize winning economist Joseph Stiglitz offers three possible solutions to the problems of the Euro. All of these solutions are theoretically doable with minimal disruption. However, if any of them are to be attempted, political will throughout Europe will need to change radically
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