A pre-mortem

Written by New York Times | Updated: Aug 13 2013, 10:57am hrs
Paul Krugman

Alan Taylor and Kevin ORourke have a very good analytical survey of the euros problems, putting it in historical perspective. Id summarise their piece as saying that the euro suffers from all the problems eurosceptics warned about, plus one they didntthe dangers of lacking banking union. Theres a particularly good discussion of the problems of internal devaluation, with the demonstration that only in Greece, which is undergoing a full-blown depression, has there been any significant fall in wages

Downward nominal rigidity is a real, important thing.