In an article in the just released Cato Journal Pascal Salin concludes:
One should be very concerned about the future of most European countries. They may enter into a long-run period of stagnation, characterized by institutional rigidities, economic instability, and poor economic performance. In addition to the financial, economic, and debt crises, it is now common to speak of a “euro crisis.” In principle, there ought not to be a euro crisis, since there is no reason to say that there is a monetary crisis just because some countries belonging to the eurozone have debt problems . Those problems ought to be solved mainly by reducing public expenditures.
In an op-ed in the WSJ last July he had said the same:
The present crisis is not a European monetary problem at all, but rather a debt problem in some countries—Greece, Spain and some others—that happen to be members of the euro zone. Specifically, these are public-debt problems, stemming from bad budget management by their governments. But there is no logical link between these countries’ fiscal situations and the functioning of the euro system.
The chart below paints the opposite picture, indicating the crisis is not a debt crisis, but one who´s origins are monetary.
As Lars mentioned today, the OECD reports recognizes the monetary nature of the problem.