The Guardian is pulling in opinions about what happens if Greece exits the Euro. Fascinating and disturbing.
Here are a couple of thoughts. What would happen if, instead of Greece, Germany unilaterally exited the Euro?
Presumably the value of the Euro would fall, Germany's reinstated Deutsche Mark might rise, it would pay a cost in exports. But, without Germany, perhaps the Eurozone could become more economically homogenous, with policies and devaluing currency more appropriate to its economic status.
A variation, what if the Eurozone was to split itself into two currency blocks? One of wealthier, industrial nations like Germany, France and the Netherlands. The other of the PIIGS and poorer Eastern European nations. The zone would strive to retain much of its political and economic co-ordination, but the two currencies would be allowed to float against each other, giving a safety valve to tensions between the productivity of different blocks.
Here are a couple of thoughts. What would happen if, instead of Greece, Germany unilaterally exited the Euro?
Presumably the value of the Euro would fall, Germany's reinstated Deutsche Mark might rise, it would pay a cost in exports. But, without Germany, perhaps the Eurozone could become more economically homogenous, with policies and devaluing currency more appropriate to its economic status.
A variation, what if the Eurozone was to split itself into two currency blocks? One of wealthier, industrial nations like Germany, France and the Netherlands. The other of the PIIGS and poorer Eastern European nations. The zone would strive to retain much of its political and economic co-ordination, but the two currencies would be allowed to float against each other, giving a safety valve to tensions between the productivity of different blocks.
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