Economic Insight - 18th January 2010
Start date: 18/01/2010
The divergent eurozone: no easy solutions in sight The current debate on Greece’s fiscal difficulties, possible bailout or default or, even, possible withdrawal from the eurozone is but one aspect of the seemingly intractable economic problems facing certain members of the eurozone. Back in the mid-1990s there was a hotly-contested debate about the potential eurozone as a possible optimal currency area in which all members could not just live with, but economically thrive, with the same currency and the same short-term interest rates as set by a European Central Bank. It clearly is not.