Perhaps I lead a sheltered life, but I found "The Tragedy of the Euro" to read like a great adventure novel. Here we have heroes (mostly post-war German bankers, resisting inflation) and villains (mostly post-war Frenchmen, allied with post-war German politicians, determined to keep the common German citizen paying and paying).
The villains believe, falsely, that they can secure for all time their special privileges over the German citizenry—which is not the same as the German elite, who often collude with the French elite for their own privileges. But this is their great error, which Professor Bagus explains so clearly. They want to ignore the laws of economics by building coercive pan-European bureaucracies to enforce their will. But this will not work. How long it will last is the question. The European financial crisis proceeds from day to day.
This wonderful book will help everyone understand what is really happening and explains the inherent flaws in the euro system using an established economic theory called 'the tragedy of the commons'. It’s quite simple really. When you share something, you don’t take care of it. And the common currency of the euro is an example of this.
Join me in my sheltered life! Read "The Tragedy of the Euro" here!
