We argue that the various proposals aimed at stabilizing the Eurozone using financial engineering do not eliminate the … amount of financial engineering can stabilize an otherwise unstable system. The real stabilization of the Eurozone entails … two mechanisms. The first is the willingness of the European Central Bank (ECB) to provide liquidity in the Eurozone …

The nature of fiscal policies was changed dramatically by the creation of the Eurozone. While prior to the start of the … Eurozone, national governments were sovereign in that they could back up the issue of debt by the issue of money, they lost … this sovereignty in the Eurozone. This had dramatic effects that were largely overlooked by the designers of the Eurozone …