Mark Crosby of University of Melbourne Business School writes on the the evolving Eurozone issues in the Australian media (The Age) and on CoreEconomics (http://economics.com.au/?p=5094). Sees Ireland’s actions as proof that you (a) can tackle problems and (b) maybe Greece leaving might not be such a bad thing!
3 replies on “Australian perspective on the PI(I?)GS”
It is clear that Greece should not have been admitted to the Eurozone in view of their … shenanigans …… coming to light since then. Ireland however has been mis-governed since admission certainly, and for a time before that, but stern action since demonstrates a willingness to adopt the euro and all that it entails!
Allowing Greece to leave….. kicking them out, may cause a few problems for them and the remaining members, but would overall have a positive effect on those within the EZ and the euro.
That would not directly address the continuing problems of those who now form PIIS ….. From those there is no escape and the speculation addressing Greece will continue, in order to drive down the euro.
Competitive devaluations of fiat currencies is always a feature of deflationary depressions. This too was predicted years ago in chatter on the web. We are merely reliving history as Niall Ferguson will undoubtedly confirm.
http://www.abc.net.au/news/stories/2010/02/14/2819088.htm
Cost of a doctor visit in Oz is $34.30, or 20 Euro…….. paid by the state to the doctor. The patient does not pay. Yet doctors are flooding to Oz again.
Don’t go as far as Oz, in France there is a move to increase it to €23, being resisted by gov., paid directly. Almost all of our problems are caused by vested interests; answered by rush by gov to do what Frankfurt says.