Grauwe, 2006). This optimism is, however, not warranted for the euro. The euro has now been in a crisis for more than three … years and a self-correcting mechanism leading out of the crisis is not in sight. The reason is that the euro union does not …, this being the essence of the euro crisis. Therefore the governments should withdraw and return to an economic union …

debt composition choices of the type observed during the recent sovereign debt crisis in Europe. …

suggests that debtor countries often lack the political ability to resolve a debt crisis. Governments in turmoil are unlikely …