The Spanish Prisoner

This is another nice write up by Krugman.  Two in a row?  What’s the world coming to?  Krugman still has the ideological and flawed position that the U.S. is going to devalue its way out of this crisis and some very flawed positions about monetary policy funding but his overall thesis of Spain is a good one.  But then again, he draws the wrong conclusions.  Spain should leave the Euro zone and reclaim its democratic right to a sovereign currency.  And it can easily deal with potential capital flight through controls and through implementing a new banking structure.  But overall, this is a worthy read for those looking to understand more about the crisis in Europe.