[quote=briansd1]
@ Allan. The Euro might have been a bad idea for Greece… But it is what is is now. We need forward thinking solutions to prevent output from collapsing simply because of a currency bottleneck.[/quote]

Brian: Referring to the Eurozone situation as a “currency bottleneck” is like referring to a tsunami as a light wave. The Eurozone problems are systemic in nature and come as a result of attempting to enforce a top down solution, while ignoring the manifold weaknesses inherent to a single currency imposed across a wide variety of economies, cultures and governments.

Look at France’s recent response to the situation: It was entirely in keeping with France’s attitude and approach and it’s entirely wrong-headed. Not singling out France, as this problem is being repeated across the Continent and it is only going to get worse.

So, Brian, what is the solution? Or, more correctly, what are the solutions? This is where Krugman breaks down and through no fault of his own. Much like the expression, “When you’re a hammer, everything looks like a nail”, Krugman lacks the answers, because we’ve not been here before. The Eurozone, collectively, lacks the political will, the economic and policy capabilities and the working age population to dig themselves out of this hole.