In the midst of such a deluge of sad prophecies about the imminent end of the single currency, it's nice to hear that there is still someone who says that it is worth keeping the euro.
The recent Nobel laureate in economics Christopher Sims declared, at a conference in Stockholm on the occasion of the awarding of the prize won with Thomas Sargent, that Europe needs to keep the euro, and that the only obstacle lies in better coordination of public budgets (read: loss of sovereignty over budgetary policies by individual euro countries, just as they lost monetary sovereignty twelve years ago).
Sims has also broken a spear in favor of Eurobonds, even as the frenetic negotiations in Brussels are underway. More controversially, Sims also argued that a 'budget union' needs to be underpinned by a 'eurotax' – to replace and not add to national taxes – in order to form the basis for a 'transfer union' .
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