Tyler Cowen on the latest news out of the eurozone:
At this point you have to be asking whether it is better to simply end the eurozone now, no matter how painful that may be….As a politician I probably could not bring myself to pull the plug, but as a blogger I wonder if that might not, at this point, be the wiser thing to do. Current crisis aside, does anyone out there see the euro’s governance structure — even with reforms — as even vaguely workable?
Nope, not me. But the sunk costs are simply too big for Europe’s leaders to be willing to dissolve the eurozone in response to anything short of a complete financial meltdown. As usual with financial crises, they can probably avoid this meltdown a lot longer than anybody thinks. But can they avoid it forever? It sure doesn’t look like it.