> It only tangentially refers to the main problem, which is that currently Italy (and Greece and Spain) are tied to a single currency, and they do not have a currency of their own to devalue to deal with this crisis. e.g. see

Honestly, having your own currency wouldn't help one bit when all the credits you've taken are in an another currency. Look at what happened to Argentina at the end of the '90s, no matter how much they devalued the Peso they still had to eventually default, because the credits they had were not in Peso.

I cannot understand why people like Krugman and most of the other economists don't bring up this point when raising issues like "it would all have been fine if the Greeks had stick to using their own currency".