Let Greece take a holiday from the eurozone

Commentary feature in which author suggest that the rest of the eurozone could allow Greece to deal with its serious economic situation by taking a temporary leave of absence from the eurozone with the right and the obligation to return at a more competitive exchange rate.

The European economic and monetary union is doubly flawed. First, it forces diverse countries to live with a single interest rate and exchange rate that cannot be appropriate for all members. Second, combining a single currency with independent national budget policies encourages fiscal profligacy. The Greek situation is a manifestation of these flaws. If European political leaders nevertheless want to preserve the current system, allowing a temporary exchange rate reset for Greece may be the best option.

ESO: Background information: Greece given month to sway doubters http://www.europeansources.info/record/greece-given-month-to-sway-doubters/

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