So glad to see someone make this point. Every time I read histrionics about how the euro is a straightjacket, a trap, an evil German plan to benefit itself at

So glad to see someone make this point. Every time I read histrionics about how the euro is a straightjacket, a trap, an evil German plan to benefit itself at the cost of its neighbours etc I just sigh. I am not even a supporter of the EU, but blaming the euro for low southern productivity is just wrong. The PIGS countries aren't seeing high unemployment and poverty because of the euro. They'd still have high unemployment even if they had their own currencies. The causes are fundamental. All a floating currency would do is make it easy for them to screw over lenders in the short term by inflating their debts, which would be compensated by the markets charging much higher rates (this already happens because investors fear default instead of inflation). It'd also act as a forcing function to require the people living there charge (foreigners) prices that are reasonable for what they can provide, rather than expect them to accept market realities and actually lower their prices in order to compete.