Tag: breakup
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Grexit and Why It Will Not Happen: Catastrophic for Greece and Destabilizing for the Euro
Abstract: Severe cash constraints faced by the Greek Government due to a pretty demanding schedule of interest and amortization payments in the remainder of 2015 have lately engineered a new explosion of sovereign bond spreads and rekindled fears of a GRexit down the road. Such fears have been exacerbated further in late April 2015…
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A withdrawal from the Eurozone: Some Simulation Studies
Abstract A withdrawal of a member state from the EMU due to market pressure has been a rather popular topic in the public debate in recent years. However, the effects of a withdrawal have been analysed quantitatively surprisingly little. Discussions have been concentrated on the crisis countries, but as the Finnish economic difficulties have deepened…
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The future of the euro — what happens if a Member State leaves?
The future of the euro — what happens if a Member State leaves? Abstract The continued viability of the Eurozone as a single currency area is challenged from time to time. Some doubt the ability of Italy and other Member States to remain in the zone, given their difficulties in complying with the applicable budgetary…
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Can we unscramble the euro mess? Can we afford not to?
The greek mess shows how debased the whole Euro project has become. Its time to think the previously unthinkable and consider how to unscramble the eggs. Its time to think about how to back out from the Euro.