Morning Must-Read: Barry Eichengreen: Greece in Light of the Past and Future of the Euro

…broadly speaking, whereas 1920-1922 was a fundamentally different animal… caused by monetary tightening by the Federal Reserve designed to wring inflation out of the economy, not by deeper economic and financial imbalances like those that set the stage for 1929-1931 and 2008-2010. The economy recovered quickly from the 1920-1921 downturn, despite an absence of monetary and fiscal stimulus, because of the delayed resumption of ocean shipping after World War I and resulting availability of cheap imported inputs… inferring from 1920-1921 that the economy can recover spontaneously from a serious downturn would be erroneous…