Fri 4 May | Harvard Business Review
Mark Blyth, professor of international political economy, writes a blog post about the five right questions that need to be asked before the right answers to the Euro crisis can be found. Among them, he asks whether saving the Euro is worth it. “The European union is based upon trust, building confidence, sharing the wealth, and mutual support. The new institutions designed to save the Euro are based upon seeing every possible interaction with another state as a moral hazard problem where trust should be eliminated. Designing institutions in this way undermines the capacity to generate trust. Trust is not an optional extra,” Blyth writes.