Something is fundamentally wrong with a currency zone where Germany has the lowest unemployment rate in over 20 years while southern Europe has depression-level unemployment.
There are some bright spots as Europe enters 2012. The recent drop of the euro currency against foreign rivals like the yen and the dollar makes European exports more competitive — a critical advantage for Germany, Europe’s largest exporter and its largest economy. German unemployment now stands at 5.5 percent, the lowest since German reunification.
Not blaming the Germans. Just saying the euro is obviously not a one-size-fits-all currency zone.
|Share |||By Randall Parker at 2012 January 08 02:43 PM Economics Sovereign Crises|