ha-joon Chang is an economist at Cambridge and he's written a book 23 things they don't tell you about capitalism so how do you in the eurozone if it collapsed is that going to be a problem well I think God will be a big transition course but in the long run it might be better for some of these peripheral European economies like Greece and Ireland if they actually pulled out about currency union you know a lot of people think artists feel completely destroyed these economies but I think the case of Argentina which throughout the late 80s and early 90s had a unilateral monetary union with the United States because they adopted this Currency Board system and completely packed their currency to the US dollar and in that latter half of the 90s when it got into economic trouble it tried to solve this problem by implementing the kind of austerity program that you see increased in Ireland today and you tried for like three four years in the end you couldn't sustain it and it defaulted on is that foreign debts and pulled out of this unilateral currency union by t pegging the currency a lot of people thought that this would be the end of Argentina but you know in the last seven eight years Argentina has been the fastest-growing Latin American economy within Europe even today why is Iceland recovering better than Ireland or crease because it is able to devalue its currency because it hasn't and what about the impact on the global economy of eurozone collapsing I mean you know the weekend we had the white house telling Europe to get its act together there's clearly a lot of anxiety in America about the wider repercussions of the eurozone collapse yes I mean since the international financial system is so interdependent these days I mean this will have impacts are far beyond the European continent but let's face it I mean the whole design of this our monetary union is flawed I mean they had a lot of countries at very different levels of economic development and different economic structure which already makes us girl monetary policy very difficult trying to pression we've heard a lot about banking reform this week have do the reforms go far enough fast enough the problem is that are much deeper than separation about universe that investment banking from commercial banking I mean just to give one example think about all these exotic financial instruments that have caused such havoc to the global financial system are we doing anything to regulate them no we are not on the excuse they ought to financial system has that become too complex to regulate but you know my answer is well if it has become too complex make it simpler and some of these instruments put restrictions on some other instruments and so on so that we can actually deal with the complexity of the system the biggest debate in in Britain around the economy is gross and that's going to keep on being a big issue until this is some signs that the economy is recovering how do you do it it's also completely it seems open for discussion nobody's quite sure in the short run it is important to maintain fiscal expansion but in the longer run out said spending strategy it has to be more geared towards our long-term growth because in the short run deficit spending can create demand but it only really creates the space to restructure the economy and generate more viable longer than growth it doesn't solve our growth problem so that you need to think more carefully about industrial strategy you know how are you going to restructure the British economy away from the financial sector discussion about rebalancing that's not a word you use is it you prefer reining in yes because a lot of decline of the British manufacturing industry is due to the excesses in the city you know the city in the last 20 years has expanded hugely it has basically put a lot of pressure on manufacturing companies because pushes for short-term profit which makes it difficult for companies to invest in long-term things like research and training its apps that are capable scientists and engineers away from the manufacturing industry because you know in the city a lot of people have science degrees because it pays so well I mean they don't see the point of becoming a corporate research scientist or engineer you've been talking to all the political parties in the last year developing what kinds of things and have you've been saying to them do any of them understand the the urgency of a of an industrial policy such as you're describing hi I'm afraid not because they they are still kind of in the freep of this idea that we have entered the post-industrial age and Britain is now a service economy manufacturing is what only the Chinese do but you know that they have to wake up to this reality without regenerating at least some manufacturing industry is Britain's that going to face constant decline in his living standard before Thatcher that Britain ran manufacturing trade surplus equivalent to 4 or 5 percent of GDP now that Britain runs manufacturing trade deficit the equivalent to 4 5 percent of GDP so that's the kind of shift that we are talking about thank you very much thank you