[isthisforme]

I think it's a mistake to assume that fiscal policy and monetary policy need to be linked.

The United States (although the federal government has expanded to a level I hope does not happen in Europe) provides an example. There are many state governments which have a dire financial situation. No one suggests the abandonment of the US dollar over it - it's understood that it's possible to have one group managing fiscal policy with a different group managing monetary policy.

I think the same applies to Europe.

And I actually do think that bankruptcy would solve core issues: a clean slate would allow things to be built a new in a more sustainable way.

It's my understanding that bankruptcy did wonders for New Zealand. It's not a wonderful option, but sometimes it's all that is left. And it's the only way capitalism works.