Eurozone: heavy euro, crushed zone

The markets have been busy kicking the deficit-ridden dollar and predicting its demise. But the biggest victim may be across the Atlantic: the eurozone. The overvalued euro, now brushing $1.40, is weighing heavily on an already fragile economy. The eurozone shrank 4.6% over the 12 months to the end of March, compared to 2.6% in the US. What’s more, official interest rates are higher in the eurozone even though deflation is approaching. The strong currency has made the region far less competitiv...