The Effects of Being in the Eurozone on the Rating of Sovereign Debt

Here is a nice short piece by Martin Feldstein explaining the error in the argument made by some French politicians – including the head of the French central bank — that UK sovereign debt should be downgraded before French sovereign debt.  In short, it seems they do not understand what it means to be in a monetary union.  The piece could emphasize more that while France is at a greater danger of default, inflation is also a pernicious destroyer of investor returns on debt, just not one covered by bond ratings.