Wall Street Journal
May 17, 2012
Does the euro still have a purpose?
Although the single currency was a political project from the start, it was also given a strong economic rationale. One European currency would cut the costs of trade, improve the flow and cut the cost of capital and would thus boost economic growth, all the while drawing the continent closer together and thus preventing the sort of bloody strife that marked the first half of the 20th century.
The degree to which the euro benefited its member countries is an open question.
Between its introduction in 1999 and the end of 2011, the 17-member euro zone achieved an average annual growth rate of 1.5%. By contrast, the U.K., Sweden, Norway and Switzerland, all outside the single currency, grew 2.0%, 2.7%, 1.7% and 1.8% respectively over that same period.
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