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The Libertarian Podcast: Greece, Germany, and the European Union
In this week’s installment of The Libertarian podcast from the Hoover Institution, I talk with Professor Epstein about the ongoing debt crisis in Greece. How did they get there? Are Germany and other creditors running the risk of going too easy on Athens—or too hard? Is the collapse of Europe’s currency union only a matter of time? Those are among the questions we’re discussing. Listen in below or take us on your mobile device by subscribing with iTunes or your favorite podcasting app.
Published in General
Interesting point at 11:05 that Germany may exit the Euro (if that is what he means). Some economists think this would be the best breakup scenario, if any breakup is to occur. The remaining Euro countries would have a weaker Euro and better export prospects. Germany after an initial adjustment would manage like the UK, Switzerland, Denmark, Sweden…
Well, it’s simple: No Germany, no Euro. There is no reason for the other countries to have a common currency–& there is no major partner to impose its will on the others when disagreement inevitably occur. So, likelier, Germany will impose more of a German version of the Euro, less what the other countries might prefer, given their strange past. Greece is hardly the only economy that’s not really working out, not to say going back into it’s natural state: Bankruptcy…
I agree on theory but in practice, it will be very difficult to do away with the Euro entirely.
Indeed, the Euro is not going away any time soon. For now, conditions on use of the Euro & Eurozone membership are punishing the countries with weak economies or spendthrift populations & gov’t’s. They used to reward that kind of irresponsibility, so this looks like a bait & switch to everyone in Europe who is not German or alike to Germany. But what can anyone do? The EU seems to be here to stay & increasingly looks to almost everyone like a useful proxy for Germany.
I think the political question forced by the EU is what will really decide things. The EU told the Irish recently not to have elections, destroyed a gov’t in Italy & then had one of its cronies set up as PM, did the same thing in Greece, & now is trying to force the newly-elected anti-EU gov’t of Greece to obey. It looks likely the EU will succeed. If peoples & their politicians put up with this, it will be German rule & the Euro will be both stick & carrot. To look at Spain or Italy or Greece–this might be for the best…