Actually, It Is Easy to Design Monetary Policy for the Euro Zone

A NYT story on the rise in the euro zone unemployment rate to 12.1 percent noted the sharp differences in unemployment rates across the euro zone and told readers:

"The divergence makes it difficult for the E.C.B. to craft a monetary policy that is appropriate for all members."

Actually this is not true. The euro zone needs expansion everywhere. It also needs re-balancing with the peripheral countries (e.g. Spain, Greece, and Portugal) becoming more competitive relative to the core countries...