[nabla9]

Soros did not "break" something that was fine if left untouched. He realized that exchange rate was overvalued and acted on it. Resulted devaluation of GBP made British labour more competitive overnight and fixed the imbalance. Other European countries (like Finland) had similar problems at the same and were forced eventually to devalue without any coordinated attack.

When economies do not form an optimal currency area, tying currencies together with fixed rate creates all kinds of problems. Having floating exchange rate where central bank only "leans" to reduce volatility is usually the best course of action.

Eurozone is constantly battling against internal imbalances. Moving towards common fiscal policy is one way to fix them.

[lupire]

Is the US an optimal currency area?