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Stephen Archer is a speaker with great charisma. By using illustrations and personal experiences and not being afraid to share his own point of view of the current situation and who is to blame for it, he engages the whole audience, at the same time helping us all to understand the credit crunch a little better.

— Warwick Business School

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The end of the Euro?

With the current stress within the Eurozone, are we witnessing the beginning of the end of the Euro?

Quite possibly in my view. I have maintained from the outset that the Euro is a deeply flawed concept and was doomed to fail if not the whole region then at least some members.

We now have the proof. Greece’s best short and long term solution to its crisis is to return to the Drachma and seek economic resolution through devaluation. The same may be said for the others, the PIIGS. Some of these have yet to fully unravel. Italy’s deficit is 117% of GDP…

So why is the Eurozone concept so flawed? Firstly, it removes sovereign ability to manage economic affairs through monetary and fiscal policy. Secondly it by default limits the competiveness of the weaker economies. Thirdly, to assume that a zone this size can be described and managed as something akin to a homogenous economy is crazy. Fourthly, the lack of homogeneity is a main cause of the failure of the zone and the certainty of its unmanageability. Fifthly (and finally for now!), the  cultures and business norms vary with such significance that the behaviours and attitude to investment, reward and risk have significant variations.


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