There are solutions to the eurozone crisis

ON EUROPE

At the heart of any debate about Europe is, unsurprisingly, the euro. Despite considerable debate around the world we believe the euro will persist and ultimately absorb new countries.

The creation of the euro was the ultimate fruition of over 40 years of Europe-wide political efforts and to throw it away seems highly unlikely to us. However, some things do have to change and this is the debate being played out at the moment.  Academics will tell you an optimal single currency zone requires a unified monetary and fiscal policy.  A unified fiscal policy allows a fully fledged system of fiscal stabilisers to be employed to help take the edge off the single interest rate policy across the zone.  In basic terms, where interest rates are too high (low) for a region or co...