So the sort of union that emerged in the U.S. Constitution and helped solve the free-rider problems and build government reputation in financial markets is not the only possible endpoint. Where Europe will end up will ultimately be determined not so much by what is the best arrangement for Europe as a whole but the political equilibrium between and within countries.Read it at Why Nations Fail
American Lessons (for Europe)
by Daron Acemoglu, Killian Professor of Economics at MIT And James Robinson, David Florence Professor of Government at Harvard University
Compares the formation the US as currency union of sovereign states from the Articles of Confederation to the adoption of the US Constitution and the EZ today. Interesting parallels. Lots of good info about US economic history packed into a short post.