Today's election in Greece seems to have created a majority for those opposing the austerity measures agreed to by Greek politicians in exchange for the bailout by the European Union. Now what? The real tragedy here is that if Greece abandons the austerity program, which frankly they should do, then they will be booted out of the Eurozone and forced back onto their own currency. Some economists think this is great. Now, Paul Krugman would say, Greece can simply deflate the heck out of their currency and prosperity will be just around the corner. That, of course, is ridiculous. The best solution would have been for Greece to do a structured bankruptcy while remaining in the Eurozone. The Eurozone is a good thing not a bad thing. The US has benefitted greatly from being a single currency union and the same beneficial effects have flowed to Europe. Remaining in the Eurozone should be a completely separate issue from the question of dealing with Gre...
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