And, despite a fall this week in its business-confidence index, Germany, which makes up a third of the euro economy, is putting in a strong performance, thanks to export growth on the back of the weak euro.
Real state revenue fell in the last two quarters for the first time since 2003, despite a sharp increase in tax receipts from export industries booming on the back of the weak dollar.
According to Krugman's "back-of-the-envelope" calculations, China's weak-yuan policy cost 1.4 million American jobs, many in manufacturing, as American producers find it hard to compete with cheap Chinese goods.
If prices start rising merely on the back of the weaker yen with no wage increases, households could feel the squeeze.
However, the current account deficit, he believes, will self-correct, as exports pick up on the back of the weaker baht and economic recovery in the US and Europe.
But it cannot be solved on the backs of the weak and vulnerable.
In the first, Turkey pursues the economic and political reforms needed to converge with the EU; in the second, it drifts back to the weak governments of the 1990s, but with less economic volatility; and in the third, it is destabilised by geopolitical uncertainty, kept at bay by the EU and polarised by tensions between secular and religious forces.
Economists worry, however, that Americans may begin cutting back because of the weak stock market, concerns about job security and the prospect of a war with Iraq.
The Wilsons went to Italy recently and plan to go to Switzerland, but said that they were cutting back because of the weak dollar.
Coming on the back of surprisingly weak growth in the first three months of the year of just 0.3%, it's not a great start for those looking for signs of a pick-up in the second quarter.
Still, the market has been punishing the company after hours, with the stock down around 2% in after-hour trading on the back of a weak outlook for the quarter coming up.
