The relationship between politics and economics has never been displayed so clearly: This is a lesson for New Jersey. We can not hope to significantly improve our economy without improving our government.
Yes I agree with the author that the ECB – whose principal “depositor” is Germany – should exercise a greater degree of quantitative easing to release the market pressures on the bonds of the troubled nations, but only after there is a degree of uniformity and prudence in the budgetary practices of the countries in question.
So far chancellor Merkel has been able to maintain the equilibrium and has accomplished the replacement of 3 not-very-cooperating governments (Greece, Italy, and Spain) with administrations more to the tune of German policy.
The German government can not continue to fund the deficits of other nations without collapsing at home. The Merkel coalition government would fall and although the German Social Democrats are also very pro-Europe, they would be forced to cease the support of the troubled euro-zone economies if they face internal upheaval.
The analysis of the author is correct except for the supra-national character of the current crisis. It is not just Germany as in 1920 but a community of 27 nations.