BARRY EICHENGREEN: ''Euro needs a reset''

From Emerging Markets

''With every day that passes, it becomes harder to deny that Europe’s leap to monetary union was a mistake.  Creating a monetary union without also creating a banking union allowed the continent’s banks to run wild.  It meant that the monetary union lacked an adequate mechanism for winding down insolvent financial institutions.  Creating a monetary union without also creating a fiscal union meant that there was no way of transferring resources from booming to depressed regions.  In its absence, the latter were consigned to the perdition of depression and crushing debt. ''

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