• Academic proposal to safely dismantle the Euro without wrecking any country's economy

    Stefan Kawalec and Ernest Pytlarczyk have written an interesting paper proposing the "Controlled dismantlement of the Eurozone".

    It's interesting stuff. The novel points that jump out at me are:

    * The crisis nations (us, Spain, Greece etc) don't leave the Euro at first, Germany does.

    * Once the process begins, only residents of Germany can have bank accounts in the new German currency.

    * German taxpayers cease to bail out the crisis nations, but German exporters suffer from a higher currency.

    * The ECB remains in charge of former Eurozone economies, presumably setting different interest rates for each, working with the advice of national governments.

    http://www.nbp.pl/publikacje/materia...dia/155_en.pdf

    Extremely readable, and thought-provoking.
    Join the discussion here.
    This article was originally published in forum thread: Academic proposal to safely dismantle the Euro without wrecking any country's economy started by feargach. You can leave a comment on this article by visiting the original post.