In recent months, some commentators have argued that Europe’s single currency project is destined to become unstuck. According to this line of reasoning, the fiscal crisis in Greece is unfailingly pushing that country towards an exit from its immutable fixed exchange rate arrangement within the eurozone. Greece, in other words, will suffer the same fate as all undisciplined countries that previously adopted hard pegs, such as Argentina in the early 2000s. Another Greek tragedy, so the argument goes, is waiting to be played out.
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