|Currency in Crisis|
Pessimism pervades discussions of Europe today. Optimists are not to be found. Many warn that the entire economic and monetary union project is likely to falter over the large deficit and debt burden of the Mediterranean members.
We have written much about the sticky wicket Europe finds itself in today: moral hazard and lack of political will on one hand and the risk of a larger sovereign and banking crisis on the other hand. There is no good choice to be made and that is why it is a tragedy.