As Krugman points out, :....Beyond that, however, even if a sudden loss of confidence does take place, countries that have their own currencies and borrow in those currencies are simply not vulnerable to the kind of crisis so widely envisaged.
On the current exchange rate discussion  Ladies and gentlemen, public debate has recently also been permeated by another topic: the euro’s exchange rate. In this connection, one can increasingly hear calls for monetary policymakers to take on a more active role with regard to exchange rates.