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Robert C. Hockett

Save Europe’s Marriage With a Trial Separation

The euro is not a fundamentally bad idea. It just needs a timeout while some critical kinks are worked out.

Europe is at least two economies: a northern tier we might call Hanseatica and a southern one we will call Mediterranea. The Hanseatic economy is primarily commercial and industrial, and relies on exports. The Mediterranean economy remains more pastoral and agricultural, and relies on debt for its purchases of manufactured goods from the north.