Volcker: need common government to make Euro work!
White House's Volcker: Future of Euro in Doubt
Excerpt:
Volcker, a former Federal Reserve chairman and a widely respected economist, told students at the London School of Economics that it was difficult to have a common currency without a common government.
"Initially I thought the euro was a good idea," Volcker said.
Comment: I've long thought that a widespread financial crisis would lead to further globalization. Interesting to hear it voiced aloud!
Given that the dollar has lost 96% or so of its value in the past 100 years, I would tend to argue that even with a central government, fiat currencies tend not to work terribly well. The only one that came close to working was the Deutschmark, and they had the advantage that the central bankers remembered their families taking wheelbarrows full of money to buy bread.
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