Euro vs Growth (again …)

There is, according to today’s Wall Street Journal , a growing political concern that the strength of the European single currency may jeopardize the region’s economic recovery.

A cheaper Euro, however, would not really suffice to strengthen growth here since there is also considerable intra-eurozone misalignment of “implicit” – or “shadow” --national exchange rates, while the intra-zone trade represents the largest part of member countries foreign trade.

Eventually, a few governments will have to face the harsh reality: the creation of the Euro was a mistake, their mistake, which only benefitted local bankers and cartelized industries ... and, yes, Germany.