The future of the euro

posted by
February 23, 2012
Ludwig von Mises Institute
by Philipp Bagus  
Posted in Commentary

"The problems of the eurozone are ultimately malinvestments. In Greece these days the struggle continues about who will ultimately foot the bill for these investments. During the early 2000s an expansionary monetary policy lowered interest rates artificially. Entrepreneurs financed investment projects that only looked profitable due to the low interest rates but were not sustained by real savings. Housing bubbles and consumption booms developed in the periphery." (02/23/12)

http://mises.org/daily/5914/The-Future-of-the-Euro  

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