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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. More

Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero … all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

Is the euro behind Belgium's blowup?

By Megan McArdle
Sep 23 2007, 1:15 PM ET Comment

The Economist's Certain ideas of Europe blog makes a point I hadn't thought of:

WILFRIED MARTENS, the former prime minister of Belgium and a grand old man of Christian Democratic politics in Europe, is not the first person to observe that the euro deserves thanks for keeping Belgium calm during the country's current political crisis (103 days without a new government). But he is the best qualified to make this point. As prime minister in the 1980s, he lived through political fights as bitter as anything seen today. But the fact that Belgium had its own currency, the franc, made a crucial difference, he recalls. Politicians knew they had a duty to resolve their disputes as quickly as possible, and end the damage being done to the franc.

In an interview with La Libre Belgique, Mr Martens recalls being visisted by central bankers from the Belgian national bank, pleading with him to resolve the latest crisis (this was in 1981).

"They told us all the time how they were having to intervene every day, billions at a time, to support the value of the Belgian franc," he recalls.

Today, with Belgium part of the single European currency, its politicians have no urgent monetary reasons to end their disputes: the Belgian travails have caused not a ripple within the vast euro system, which is far more concerned just now with the American economy than Brussels squabbling. (In proof of which, the euro this week just headed past 1.40 to the dollar).


The problem of disentangling financial assets and currency is one of the major forces mitigating against separatism. It's generally a good bet that the weaker party in the national union will be the one to lose out from a separation; given their financial and political structure, for example, I'd expect to see a Quebecois franc trail the Canadian dollar by a considerable margin. (Although I'm pretty sure Alberta would experience the many joys of a rapidly appreciating currency). Now that the European Union has taken over the currency, as well as many of the trade and customs functions of traditional federal governments, Belgium as a state suddenly looks a lot less necessary. One wonders if the current era of economic integration (assuming it continues) might not bring increasing political balkanization.

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