Paul Krugman: The Economic Failure Of The Euro : NPR - 0 views
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Krugman explains that having a transnational currency does have obvious benefits — it makes doing business a lot easier in Europe. But, he says, there's also a downside: By giving up its own currency, a country also gives up economic flexibility and the benefit of having its own federal government back it up in times of economic trouble.
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Krugman points to the economies of Ireland and the state of Nevada as examples. Both depend on exporting as a major source of revenue (Ireland to other countries, Nevada to other states)