The Tyranny of a Currency

currency

The institution of the Euro may have seemed like a work of genius as a surreptitious way of binding the nations of Europe more tightly together, but the experience has been a mixed blessing for some of them.

without any control over monetary matters, individual nations lack any incentive to delay gratification.

The problem with the set-up is exactly the fact that the nations are not bound together, with each one setting their own tax and spending policies. Priorities differ from nation to nation, and without any control over monetary matters, individual nations lack any incentive to delay gratification.

The German work ethic, while admirable, has not been adopted by other nations in the Euro zone, primarily the nation of Greece. And without the ability to adapt monetary policy to the spending level, or providing a stimulus when needed, the Greeks are trapped, hoisted by their own petard.

Imposing German values on Greece will never work because the two peoples are not alike, and never will be. So what is the best solution to the current conundrum?

Inevitably, Greece must abandon the Euro and be allowed to sink or swim as a nation based on their own decisions. When Greece assumes responsibility for Greece, their attitude towards life, taxes and government policy will assume a more adult hue.

The departure should be executed as smoothly as possible to minimize unnecessary hardship on the other nations still using the Euro. That’s the best course of action for all concerned.