Angela Merkel warned earlier this week that Germany will bail out the rest of the EU over her dead body. A Citadel CEO and University of Chicago economist argue today in the N.Y. Times that the solution to the Eurozone problem is not for Greece to abandon the Euro, but for Germany to do so.
I've often confessed here that monetary theory confuses me. People act as though currency were a magic wand. I see it as a kind of promise, and therefore something that's incompatible, long-term, with lying. The proposal for Germany to re-introduce the Deutschmark at least has the advantage of uniting words and reality in the combination we often describe as "honesty."