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Bankruptcy can happen for a country. Happy exporting something to Somalia and getting a Somali currency bank check as payment - No? It's trickier to go bankru
by oiuygtfrtghyju 16y ago
Bankruptcy can happen for a country.
Happy exporting something to Somalia and getting a Somali currency bank check as payment - No?
It's trickier to go bankrupt if your country use somebody else's money. Would you sell to Greece and accept euros you can spend in Germany - Yes ?
- mfukar 16y agoTrue; expulsion (or leave) from a monetary union will also effect the euro considerably, and those issues (mistrust, bond revaluation, etc.) can quickly evolve in an avalanche effect. No sane person in the EU wants that.
- oiuygtfrtghyju 16y agoAlso physically a bit tricky. You would have to announce it in advance, to allow time for the new currency to be produced - in which time everybody would hoard euros. Then everyone waits for the new currency to fall like a stone, so nobody uses it, so no tax revenue.