Sunday, May 30, 2010

Demise of the euro is out of the question

May 27 (Bloomberg) -- Former Bundesbank President Helmut Schlesinger said the euro’s slide hasn’t left it at an unnaturally low level and the breakup of Europe’s 16-nation currency union is out of the question.
“The euro isn’t in danger,” ... While the pace of the currency’s decline “did give cause for concern,” its level “is by no means catastrophically low,” he said.
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Comment: Indeed, the stakes are so high for the euros that the consensus among the authorities to maintain the common currency indeed is very high. Let's remember that Schlesinger was a staunch inflation fighter at his time at the Budensbank and he received a heck of criticism from the American Keynesians who now praise the German central bank in retrospect more than it ever deserved. What a silly world we live in.

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