inetpub Carl-Ludwig Holtfrerich - What the 19th Century US Can Teach Today's Europe About Sovereign Debt

If the countries in the European periphery defaulted on their debt, the euro as a common currency breaks down. This contention is used as an argument for bailouts and rescue packages, and Carl-Ludwig Holtfrerich says it's wrong.
He draws a parallel to the US debt crisis in the 1840s, when the US had a common currency and a fully-fledged central government, and nine out of 27 US states defaulted. That crisis, he says, did not endanger the US dollar then, just as the current crisis doesn't endanger the euro now.

inetpub Carl-Ludwig Holtfrerich - What the 19th Century US Can Teach Today's Europe About Sovereign Debt
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