Adam Smith Institute

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Why the Euro went wrong

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When the single currency was adopted, Germany effectively loaned its AAA-credit rating to every other eurozone country. So Greek debt – like a subprime home loan – suddenly went from being rather risky to being a 'safe' investment. Then the true state of Greece's finances became clear. And everyone realised that Greece wasn't Germany at all. That's what triggered the panic.

John Stepek from Money Morning