Sure, that’s the proximate problem, the one that is most obvious and in our faces. But the root problem, the ultimate cause, has nothing at all to do with either debt or fiscal policy: It’s monetary policy that is at error here. And yes, it is indeed all the fault of the ECB and the fools that designed Europe’s current monetary structure.
Market Monetarists have known that for a long time. And as this post shows, the analysis is also relevant for the US, albeit with different implications:
Same monetary view of the crisis but very different implications. Why? Because of the dysfunctional political and structural nature of the EZ currency union compared to the US´s own.
You can read the original post here.