The lessons Europe forgot are the ones Australia will do well to remember

The Irish have seen their booming economy implode. Is it a good lesson for Australia? AAP

When Treasurer Wayne Swan finger-wagged at the recent set of G20 events, scolding his European colleagues and telling them to get their act together, he had more of a point than perhaps the Australian media gave him credit for.

One the central tenets in economics is that that economic policy needs to be credible and politically feasible or it will be hijacked by any number of forces.

The inability of the Eurozone forces to put in place a “wall of money”, as one Finance Minister put it, places Europe in the same position the precursor to the euro found in 1992 – except this time it is not just one speculator (George Soros) but rather the forces of the entire sovereign debt market that are finding every weak spot and going after it.

IMF head, Christine Lagarde: no solution yet. AAP