One Interest Rate, 13 Economies
Shared euro interest rates may spell trouble for some European Union members that are unable to customize interest rates to boost or temper the country's individual economy. Spain, for example, is currently facing an impending economic crisis but is unable to lower interest rates to keep its economy moving forward and avoid a crash.
Thirteen knobs are now just one knob. It must have seemed like a good idea at the time. I guess that's why my oven doesn't just have an on/off switch.
Spain, on the other hand, would prefer rates be lowered in order to cushion its economy from an impending crash. Without the ability to control its interest rates, Spain has no way to restore balance to its economy and will remain helpless as its economy faces a probable recession.
Spain has reassured us all that any adjustment is ridiculous, unthinkable, completely out of the question, that they have one of the most efficient financial systems in the world, and that it is immensely solid as well. Why worry?
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