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The Eurozone’s Misplaced Orthodoxies

ATHENS – With the euro crisis still far from resolved, the currency union’s future remains at the center of heated debates. But, in many cases, positions have become so polarized that they miss the point, impeding the ability of EU policymakers to agree on and implement an effective crisis-response strategy.

Consider the question of who the euro’s real winners and losers are. Given that the eurozone is typically divided into two categories – the northern creditor countries and the southern debtor countries – this question can be understood in terms of whether a current-account surplus signifies economic success or failure.