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Wednesday, June 08, 2005

Euro: One Size Doesn't Fit

And here's the evidence:



See full article in the economist.

3 comments:

Anonymous said...

I'm amazed the economist resisted the temptation to leave the UK off that chart. Not like them to pass up the opportunity.

ivan said...

I think the point of The Economist was not to show that growth is higher in countries that are not part of the euro-area, but that growth is diverging between members of that area. On the other hand look at Ireland, with high growth essentially disappearing after introduction of the euro.

Edward Hugh said...

I think yoiu're right Ivan. Incidentally, I have a post today on Ireland Europe's 'Tiger' over at Afoe. I would say the worst part of the euro is the inflation and housing element which come from having negative real interest rates. This really isn't what Ireland needs.