Monday, March 29, 2010

monetary policy

I don't understand monetary policy, so someone please explain to me what the difference is between saying "The Greece crisis shows that the Euro zone is broken; Germany should leave and start it's own monetary union" and saying "The Detroit crisis shows that the US Dollar is broken; North Dakota should leave and form its own monetary union" aside from political feasibility and the fact that no one thinks of the US in confederate terms anymore? If there is no difference, Germany might as well get used to being the rich, responsible state within the unified European Union that supports its troubled neighbors. They should already be used to that because of reunification anyway.

Not that I actually support that conclusion; I like the idea of competing currencies. But the US dollar definitely isn't going anywhere no matter how much state heterogeneity there is.