Listening to the Spanish “Austrian”, Jesus Huerta de Soto, discoursing on the effect of the euro on Spanish fiscal policy. It has been a stunning success in containing public spending and in tying the hands of unions. It is the de facto gold standard only in this case there is no possibility of abandoning the euro in the way the gold standard was
It is rating agencies that matter, not currency traders. Governments have even been forced to tell the truth. Democracy, he says, can only work if there is an institutional structure that disciplines the political class. This the euro has done in spades.
The great error of the European Central Bank, he says, has been its failure to isolate Europe from the expansion of
“The logic of the euro as a single currency has finally prevailed” in contrast with the US and UK who have monetised their debt. He is very down on the economic policies of “the Anglo-Saxon world”. The euro he concludes may yet force a discipline on the Federal Reserve.