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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.


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.