On European economy

A question from Yahoo! Answers:

European Economy?

Is European economy recovering from the bad experiences of the 1990’s?

And can you forecast the future of European economy? Will it be good, or pass the prosperity to the U.S. and Asia?

First of all, there is no reason for Europe, U.S., and Asia not to prosper at the same time. Prosperity is not a zero-sum game.

The problem with European economy is that there is no such thing as European economy. Spain in currently the case in point; it badly needs a monetary contraction, which the European Central Bank cannot provide without providing it to other euro countries. Europe needs to realize that while the common market was the best thing to ever happen to it, bar none, the euro was an expensive mistake.

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