Daily Archives: May 19, 2012

I have noted in the first part of this blog that the debts of countries in the eurozone have suffered a very different fate from those outside the eurozone during the crisis. This is evident when one compares the yields on sovereign bonds of the UK with those of France, Italy and Spain, countries that on the face of it, have governments at least as solvent, if not more so.

So why has the experience of the eurozone members been so different and so painful and what can be done to remedy the problem?

There are two possible explanations, which are not mutually exclusive.