Invesco economist Greenwood expects euro to survive

The single currency is unlikely to collapse despite the pressures of the European sovereign debt crisis, says John Greenwood, the Invesco chief economist.

The single currency is unlikely to collapse despite the pressures of the European sovereign debt crisis, says John Greenwood, the Invesco chief economist. Greenwood argues European Union countries could follow in the footsteps of Baltic states Latvia, Lithuania, and Estonia, which have previously supported their economies by internal devaluation. Internal devaluation is effectively maintaining a strong exchange rate in order to force costs lower, including wages, so economies remain competitive. "EU countries are part of a currency union and cannot individually devalue their curren...