So we all feel the results of the recent economic recession in Europe, caused partly by the failure of governance in some particular countries…but what should we do about it? The idea I was discussing with people was: what if we created a second currency to accompany the Euro, and what would the economic implications of this be?
The idea is is that we have the Euro which we want to keep strong, and a second currency, which we´ll call “Blue”, to accompany the Euro. Blues will be weaker than the Euro in order to make exports attractive to other countries, and the Euro will stay strong in order to keep buying power. In theory, this could help the situation present in some EU countries who are experiencing economic problems. My question is, what will be the implication of the Blue on a world wide scale? And is this even feasible? Any economists out there who want to comment?