Saturday, December 12, 2009

Totally unlike Texas abandoning the dollar

Brian Lenihan says talk of Ireland leaving the euro "is akin to stating that Texas will leave the dollar." You're wrong Minister. Texas' economy is much more tightly integrated to the other dollar states than is Ireland's tied to the other euro states.

Our biggest trading partner is outside the euro and overall we have by far the lowest percentage of inter-euroland trade of all the euro countries. In fact, we have less inter-euroland trade than many non-euro states: Denmark, Sweden, Poland, ...

We may not leave the euro, but such talk is in no way analogous to Texas and the dollar.