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Can anyone explain what is meant exactly by "failure of the Euro"? It just refers to a falling of the exchange rates of EUR vs anything else? Or rather to a sce
by blue1 17y ago
Can anyone explain what is meant exactly by "failure of the Euro"? It just refers to a falling of the exchange rates of EUR vs anything else? Or rather to a scenario in which there is a changeover back to national currencies (slightly unthinkable, apparently)? Or what else?
- hga 17y agoThe latter. E.g. as an initial step, one that sure looks like it will have to happen absent a bailout, is that Greece withdraws from the Eurozone and starts issuing its own currency again. The government would offer every holder of a Euro denominated government bond repayment in that currency ... and that's where it starts to get very messy. What about Greek banks? What about Greeks holding Euros (physical or in non-Greek banks)? Who externally will accept payment in that new currency for physical stuff (e.g. food)? Does this become congagious, with one or more of the remaining PIIGS (Portugal, Ireland, Italy, Greece and Spain) following? Then what? (I'm not at all clear on that.)
- blue1 17y agoThe changeover TO euro had to be carefully prepared for years. The reverse looks like an apocalyptic scenario. I don't know, anything can happen, of course, but I live in the eurozone (Italy) and the very idea of abandoning the euro looks like bad SF to me.