The Eurozone as a Roach Motel

Greece is dominating financial news just now. I'll keep my thought for today quite brief, though the subject is complicated.

The problem seems to be that there is no 'clean' way for Greece to leave the Eurozone. Bringing back the drachma would require at the least an extremely complicated period of transition, one with which the rest of Europe would have no incentive to co-operate.

So the Eurozone is like the roach motel of yore. Roaches check in, but they can't check out.

Yet there is no a priori reason to believe that the single monetary policy maintained by the Europen Central Bank and related authorities is best for all the countries involved. So one might naturally hope that thought will be given to an orderly exit mechanism.

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