Wie entstand die dramatische Situation in Europa?

Paul Krugman schildert seine Sicht auf die Entstehung der dramatisch angespannten Lage in der Eurozone:

As I see it, the underlying eurozone story is pretty clear and simple. After the creation of the euro, investors developed a false sense of security about lending to peripheral economies; this led to large capital flows from the core to the periphery, and corresponding current account imbalances [...] These capital inflows also caused a boom in the periphery that raised costs and prices dramatically compared with the core [...]

Now all of that has to be unwound. So how is that supposed to happen?

It seems obvious that spending cuts in the periphery have to be offset by spending increases in the core, and also that a way has to be found to make the required real depreciation in the periphery feasible. But eurozone policy is for austerity everywhere, and a low inflation target for the area as a whole, which means crippling deflation in the periphery.