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> Game theory can't explain the Greek crisis - the entire euro project is now in the hands of fate The euro(the money) isn't born out of any necessity, it's pu

by aikah 11y ago

> Game theory can't explain the Greek crisis - the entire euro project is now in the hands of fate The euro(the money) isn't born out of any necessity, it's purely an ideological project. So it's no surprise it is destined to fail. The only question now is, will it fail peacefully or not?

bduerst 11y ago
The euro is necessary for the E.U. to remain economically competitive internationally. The problem lay in the implementation, and not mandating a fiscal policy for membership (e.g. something similar the austerity measures). "Game Theory" in the context of this article is assuming that all countries on the Euro will rationally avoid mutual destruction. To do that, they all need to agree to the fiscal policies that would have prevented Greece and others from getting to the point that they're at now. But that's not happening - there doesn't appear to be a universal fiscal policy for the Euro in sight and they're heading for mutual destruction (i.e. the countries are not behaving rationally and game theory doesn't apply).
- natrius 11y ago
  The euro does come with a mandate for fiscal policy. It just isn't enforced since so few countries have been able to abide by it. https://en.wikipedia.org/wiki/Maastricht_Treaty#The_Maastricht_criteria https://en.wikipedia.org/wiki/Maastricht_Treaty#The_Maastric... What would you suggest as the enforcement mechanism for such a mandate? You can't kick a country out of the currency.
- aikah 11y ago
  > The euro is necessary for the E.U. to remain economically competitive internationally That's bull. Norway, UK and others are doing pretty fine and they do not have the euro. France,Spain,Italy,and Greece are a complete disaster,only Germany is doing really well and it's clear it has nothing to do with the euro. > The problem lay in the implementation, and not mandating a fiscal policy for membership (e.g. something similar the austerity measures). Oh yeah, Euro is broken , so what do when need? more Europe, more power in the hands of a few ... no we need to get rid of that stuff asap and less concentrated powers. There was no need for a monetary union. At all. It didn't bring back all the industries, it didn't create jobs (10% unemployment in my country,...) , it served no purpose at all.
  - vilmosi 11y ago
    >>> Germany is doing really well and it's clear it has nothing to do with the euro. Germany is doing fine particularly because of the euro. They can have very cheap exports because of it. When a single currency represents vastly different economies, it's obvious the rich get richer and the poor stay poorer. Of course, the euro was only meant for countries with comparable economies. Too bad Greece basically lied to adopt it. And now Germany has every reason possible to keep weaker economies in the fold for its own benefit.
  - bduerst 11y ago
    Norway is dependent on oil, and Sweden was strong internationally before being asked to join the Euro, which is why it wasn't necessary for them to take the Euro and why they didn't. Germany has everything to benefit from the Euro with it's European exports.

by aikah 11y ago

bduerst 11y ago

The euro is necessary for the E.U. to remain economically competitive internationally. The problem lay in the implementation, and not mandating a fiscal policy for membership (e.g. something similar the austerity measures). "Game Theory" in the context of this article is assuming that all countries on the Euro will rationally avoid mutual destruction. To do that, they all need to agree to the fiscal policies that would have prevented Greece and others from getting to the point that they're at now. But that's not happening - there doesn't appear to be a universal fiscal policy for the Euro in sight and they're heading for mutual destruction (i.e. the countries are not behaving rationally and game theory doesn't apply).

natrius 11y ago
The euro does come with a mandate for fiscal policy. It just isn't enforced since so few countries have been able to abide by it. https://en.wikipedia.org/wiki/Maastricht_Treaty#The_Maastricht_criteria https://en.wikipedia.org/wiki/Maastricht_Treaty#The_Maastric... What would you suggest as the enforcement mechanism for such a mandate? You can't kick a country out of the currency.
aikah 11y ago
> The euro is necessary for the E.U. to remain economically competitive internationally That's bull. Norway, UK and others are doing pretty fine and they do not have the euro. France,Spain,Italy,and Greece are a complete disaster,only Germany is doing really well and it's clear it has nothing to do with the euro. > The problem lay in the implementation, and not mandating a fiscal policy for membership (e.g. something similar the austerity measures). Oh yeah, Euro is broken , so what do when need? more Europe, more power in the hands of a few ... no we need to get rid of that stuff asap and less concentrated powers. There was no need for a monetary union. At all. It didn't bring back all the industries, it didn't create jobs (10% unemployment in my country,...) , it served no purpose at all.
- vilmosi 11y ago
  >>> Germany is doing really well and it's clear it has nothing to do with the euro. Germany is doing fine particularly because of the euro. They can have very cheap exports because of it. When a single currency represents vastly different economies, it's obvious the rich get richer and the poor stay poorer. Of course, the euro was only meant for countries with comparable economies. Too bad Greece basically lied to adopt it. And now Germany has every reason possible to keep weaker economies in the fold for its own benefit.
- bduerst 11y ago
  Norway is dependent on oil, and Sweden was strong internationally before being asked to join the Euro, which is why it wasn't necessary for them to take the Euro and why they didn't. Germany has everything to benefit from the Euro with it's European exports.