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It's more complex than that... Debt is denominated in currencies ... so with the current system bad borrowing behavior by one member of the currency union (Gre

It's more complex than that... Debt is denominated in currencies ... so with the current system bad borrowing behavior by one member of the currency union (Greece) would lead to devaluation of the currency to other members of the union (Germany). Having multiple currencies is okay as long as there is liquidity between them. That being said, centralizing currency leads to economic growth as long as the money is well spent (investment) rather than evaporated (excessive social benefits)

elastic_church 10y ago
> Having multiple currencies is okay as long as there is liquidity between them. The bond market in that entire economic region was comparatively underdeveloped and has attracted massive liquidity improvements since 1999 stretch far out down the yield and risk curve But yes we can write a whole dissertation on various aspects of the monetary union