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Economics

What’s So Special About the Euro Currency Area?

June 21 (Bloomberg) -- Now that the Greek election failed to solve anything, Europe is back to the same problems it faced before.

Not the ones predating Sunday’s election, which resulted in the formation of a coalition government of Greece’s pro-Europe parties. But the difficulties that existed before 11 sovereign nations scrapped their currencies and adopted the euro on Jan. 1, 1999, with the goal of bringing peace and prosperity to the continent. The idea of one monetary policy for all was unworkable then, and it’s unworkable now, primarily because the countries never had a mechanism for dealing with a crisis.