Markets and market commentators have failed to notice that the decade of the euro has been far more catastrophic than Japan's "lost decade."
On all these vital measures--GDP growth, debt, labor costs, and labor productivity--the whole era of the euro from beginning to end has been catastrophic for the economies that comprise the common currency area, both separately (including Germany) and collectively, by making them less competitive not only against the dynamic emerging economies but also against the mature economies of the United States and Japan.
GDP. Eurozone GDP grew more slowly during the euro era than did Japanese GDP during the "lost decade."
Debt. At 5.7 percent, euro era debt growth in the eurozone is three times faster than that of Japan in the "lost decade."
Overall Productivity. Over the course of...