Specifically, the reason Greece (and Ireland, and Portugal, and to some extent Spain) are in so much trouble is that by adopting the euro they’ve left themselves with no good way out of the aftereffects of the pre-2008 bubble. Krugman advocating decentralized monetary powers.The reason NY, California, Florida and Illinois are in so much trouble is that they have adopted the Dollar without the fair representation in the legislature of DC. I agree with Paul here, we should decentralize the Fed, adopt regional monetary areas and let each have money creation powers. To accomplish an economic recovery we are going to need another 20 senators get us closer to democracy.
Yglesias, Krugman, and Baker, are all coming to the same conclusion, they have all erred badly in urging more centralized fiscal power.
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