Krugman seems to be saying that...like California...Greece and the Eurozone were the poster children of the Great Bubble Age...alas, now ended...
As long as everything was "expanding"...things went well... But when the first economic 'white water' popped up...everything capsized...
Krugman concludes that the Euro is at risk....
But I think the Euro is simply overvalued with respect to the US dollar....Any US traveler in the Eurozone feels this in their wallet...almost immediately...
Everything seems "mispriced" in Euroland... Often items that are stamped with a dollar price...will be 20% more in Euros...!
Everything seems "mispriced" in Euroland... Often items that are stamped with a dollar price...will be 20% more in Euros...!
Example...a guide book for Athens...in English...will often have international prices printed on the back...
Why is that book stamped $8....but sells for 11 Euros...in Greece...?
Yes...currencies can have different values....but the Euro Dollar relationship is too far out of whack...
The Euro and the Dollar should be "AT PAR"...that would solve a lot of problems...
