- The workings of the European Monetary Union are still not well understood by many citizens, especially in countries which are the main beneficiaries of the euro.
- The system is rife with dysfunctions that are only papered over by economic tailwinds and vigorous ECB action.
- But fundamentally, not much has changed and the system is very fragile to adverse economic shocks.
- The first of these is a product of the euro itself and is very predictable, a tightening ECB because policy is too loose for the central countries.
Source: Someone Should Explain To The Germans And Dutch How The Euro Works In Their Favor | Seeking Alpha