I do wonder whether the end of the euro standard, if it will come, will trigger similarly enthusiastic responses from leading economists. Probably, yes. After all, the countries that left the gold standard did very well. Almost two years ago I had a graph on my blog in a post in which I compared the euro system to the gold standard. (Feels good to reread my words!)
I believe that there are two roads towards which the can – now filled with explosives – can be kicked down. Leaving the euro is one road – or better: “highway to hell”, as a part of the economic establishment puts it – and the other is more Europe. However, the European Union is bigger than the euro zone, and it does not follow democratic principles. While our leaders wasted years discussing the importance of Christian faith as a pillar of European society, nobody seemed to care about our shared democratic traditions. It seems that Europeans will pay a dear price for that mistake if they do not act comprehensively soon. Recent history has shown that this is very unlikely to happen. Schäuble’s mumblings about more European integration shows clearly that politicians have no grasp of the situation.