Today’s RGE monitor has a feature, or whatever you’d call it, bringing together recent articles on yesterday’s IMF rumours, on intra-EMU government bond spreads, and on the possibility of exits from the Eurozone. The fact that these topics are being linked tells you something about how people are thinking. However, the Buiter and Eichengreen articles linked to by RGE are helpful in stating the case as to why Eurozone membership is so helpful now for countries like us: the counterfactual is pretty scary. The implication of EMU membership however, as many of you have pointed out, is that nominal wage cuts are badly needed (so what on earth are the ESB thinking of?).