{"id":43426,"date":"2019-02-02T08:33:14","date_gmt":"2019-02-02T13:33:14","guid":{"rendered":"https:\/\/olduvai.ca\/?p=43426"},"modified":"2019-02-02T08:33:30","modified_gmt":"2019-02-02T13:33:30","slug":"how-the-euro-enabled-europes-debt-bubbles","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=43426","title":{"rendered":"How the Euro Enabled Europe&#8217;s Debt Bubbles"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/mises.org\/wire\/how-euro-enabled-europes-debt-bubbles\">How the Euro Enabled Europe&#8217;s Debt Bubbles<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s the twentieth anniversary of the euro\u2019s existence, and far from being celebrated, it is being blamed for many \u2014 if not all \u2014 of the Eurozone\u2019s ills.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, the euro cannot be blamed for the monetary and policy failures of the ECB, national central banks and politicians. It is just a fiat currency, like all the others, only with a different provenance. All fiat currencies owe their function as a medium of exchange from the faith its users have in it. But unlike other currencies in their respective jurisdictions, the euro has become a talisman for monetary and economic failures in the European Union.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The Birth of the Euro<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To swap a number of existing currencies for a wholly new currency requires the users to accept that the purchasing powers of the old will be transferred to the new. This was not going to be a certainty, and the greatest reservations would come from the people of Germany. Germans saved, and therefore risked the security of their deposits in a new money and monetary system. They were reassured by the presence of the hard-money men in the Bundesbank, who had a mission to protect the mark\u2019s characteristics against the weaknesses that would almost certainly be transferred into the new euro from more inflationary currencies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These anxieties were assuaged to a degree by establishing the ECB in Frankfurt, close to the watchful eye of the Bundesbank. The other nations were sold the project as bringing greater monetary stability than offered by their individual currencies and the reduction of cross-border transaction costs. Borrowers in formally inflationary currencies also relished the prospect of lower interest rates.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How the Euro Enabled Europe&#8217;s Debt Bubbles It\u2019s the twentieth anniversary of the euro\u2019s existence, and far from being celebrated, it is being blamed for many \u2014 if not all \u2014 of the Eurozone\u2019s ills.&nbsp; However, the euro cannot be blamed for the monetary and policy failures of the ECB, national central banks and politicians. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7772,233,280,282,24269,309,426,431,7617],"class_list":["post-43426","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alasdair-macleod","tag-ecb","tag-euro","tag-european-central-bank","tag-european-debt-bubble","tag-fiat-currency","tag-inflation","tag-interest-rates","tag-mises-institute"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=43426"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43426\/revisions"}],"predecessor-version":[{"id":43427,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43426\/revisions\/43427"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}