Friday, 14 November 2008
Italy & The Euro
I wonder how long the Italians will persist with the euro. Today we learnt that the country has entered its fourth recession in the past ten years. Before it adopted the single currency, Italy was doing pretty well. The establishment decided that the problem for the country, however, was its pernamently weak currency, and so enthusiastically swapped the lira for the euro. They turned out to be wrong. Italy did much better with a weak currency. It's so obvious that the euro has worked out badly for the Italians that at some point even the political class running the country must be able to figure it out.