There is no Eurozone Crisis
The Eurozone doesn’t have a debt crisis. Individual Eurozone countries obviously do – and these individual problems are being exacerbated by the common currency. But at the level of the zone as a whole the debt dynamics look pretty robust.
The two charts below (data from the IMF’s April World Economic Outlook database) clearly demonstrate this.
All of which makes a Eurobond more appealing as a crisis solution – but as Chris notes maybe the problem is that I’m seeing this as a technocratic rather than a moral problem?
For the most vivid demonstration of this – I highly recommend the Eurozone crisis explained with Lego (as explained by JP Morgan)…