The Global economy is one of the world's greatest innovations. It has allowed all four corners of the globe to have access to goods and services that even just 20 years ago were not readily available. It is also creating a free market for ideas regardless of the continent you reside on as long as you have an internet connection. As more countries are participating the standard of living is starting to improve. These benefits are hard to deny when the evidence is easy to see for most average consumers. However every system has its fatal flaw and the recent financial crisis and the growing debt problem in regions like Europe are making them more evident.
Cracks in the Foundation
The basis of the global market is free trade across borders with as few restrictions as possible. It is believed that the market can regulate itself. In order to make this happen national governments agreed to accept neoliberal market policies such as reducing protective measures like tariffs and currency manipulation. This created the basis of a common market in which various national economies could freely interact and exchange goods and services. However unified action limits the tools that are available to governments when economic downturns occur. One positive aspect of protective measures for national economies is that it gave governments more control over their domestic economies and guaranteeing better results when such actions are taken. However the global market often limits the actions that can be taken. A good example is the European Union or Eurozone.
Crisis in the Eurozone
Following the devastation of World War II, the creation of the Eurozone by key nations Germany and France offered a path to revival for Europe's economic fortunes. It had obvious benefits in allowing the small individual national economies to enjoy economic clout on par with major economies like Japan and the United States. When the Euro was introduced it was thought the new currency would allow Europe to counter the clout of the U.S. dollar as a reserve currency. Evidence showed that these assumptions had merit. The Euro when introduced had comparable value to the dollar and seemed to boost the buying power of Eurozone's member nations. The real problem came when newer members experience the first major downturn.