Germany and the Euro Crisis

Posted by John Rosenthal

Lazy, profligate, scheming Greeks versus honest, thrifty, industrious Germans. Southern vice versus northern virtue. For much of the news media, the euro sovereign debt crisis could be summarized in the form of a morality play opposing national or regional stereotypes. But what if the financial strains on the so-called PIGS that threaten the eurozone are a product of the eurozone itself? What if the problems of the euro, in other words, are of the euro’s own making?

A careful look at trade statistics reveals the disaster that the euro has been for the “PIGS” – and the boon that it has been for Germany.

See my new essay in the current issue of World Affairs — now available online here.

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