Why the Euro Is Not Worth Saving

(Dit artikel is inmiddels vertaald en hier verschenen, en ook in Trouw gepubliceerd, helaas allemaal copyrighted dus niet op globalinfo.nl geplaatst)

Tuesday 12 July 2011

by: Mark Weisbrot, The Center for Economic and Policy Research

The Euro is crashing today to record lows against the Swiss Franc, and interest rates on Italian and Spanish bonds have hit record highs. This latest episode in the Eurozone crisis is a result of fears that the contagion is now hitting Italy. With a two-trillion dollar economy and $2.45 trillion in debt, Italy is too big to fail and the European authorities are worried.

(‘…)

It appears that much of the European left does not understand the right-wing nature of the institutions, authorities, and especially macroeconomic policies that they are facing in the Eurozone. This is part of a more general problem with the public misunderstanding of macroeconomic policy worldwide, which has allowed right-wing central banks to implement destructive policies, sometimes even under left governments. These misunderstandings, along with the lack of democratic input, might help explain the paradox that Europe currently has more right-wing macroeconomic policies than the United States, despite having much stronger labor unions and other institutional bases for more progressive economic policy.

(Hele stuk te lezen  in the Guardian)