"The unthinkable is becoming possible. Until recently, the breakup of the euro area seemed nothing but an illusion, but suddenly this possibility is a clear and evident danger. If the euro area is to be broken up, it should be done as amicably, cleanly, symmetrically —and as fast as possible.
A collapse of the euro only a dozen years after its introduction would be a great folly. But as Wolfgang Munchau of the Financial Times has pointed out, such a risk is steadily rising and policymakers need to consider how to minimize the damage of such an economic disaster.
Collapses of currency zones are usually very painful, and a dissolution of the euro area will be no exception. Three historic examples are the collapse of the Soviet Union, Yugoslavia, and the Habsburg Empire. All ended in hyperinflation along with massive declines in output..."
at http://www.piie.com/realtime/?p=2556&utm_source=feedburner&utm_medium=%24%7Bfeed%7D&utm_campaign=Feed%3A+%24%7Bupdate%7D+%28%24%7BPIIE+Update%7D%29
A collapse of the euro only a dozen years after its introduction would be a great folly. But as Wolfgang Munchau of the Financial Times has pointed out, such a risk is steadily rising and policymakers need to consider how to minimize the damage of such an economic disaster.
Collapses of currency zones are usually very painful, and a dissolution of the euro area will be no exception. Three historic examples are the collapse of the Soviet Union, Yugoslavia, and the Habsburg Empire. All ended in hyperinflation along with massive declines in output..."
at http://www.piie.com/realtime/?p=2556&utm_source=feedburner&utm_medium=%24%7Bfeed%7D&utm_campaign=Feed%3A+%24%7Bupdate%7D+%28%24%7BPIIE+Update%7D%29
