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Additionally, if the weak countries would leave th Euro, wouldn't that strengthen it instead of disintegrating it? I don't see the strong euro economies having

• arethuza 15y ago
  That's what I wondered - surely the value of the Euro would shoot up if the PIIGS left. However, this might cause problems for huge exporters like Germany.
• wtvanhest 15y ago
  Disintegration refers to the process of removing the construct that is the euro and allowing all (or some weak) European countries to print their own money. The problem with the Euro comes from the fact that all countries are locked in to the euro and that some countries (those with lots of debt) would benefit from the inflation that would be caused by printing Euros and some countries who saved money (Germany) would loose if inflation was prevalent. The quickest way to understand the Euro crisis is to understand the concept of inflation and what it will do to each country. *Alternative solutions that were proposed weeks ago include germany lending to greece or all of europe lending to weaker countries, but those loans required the countries borrowing to adopt tighter monetary policy. That tighter monetary policy caused riots in greece because they didn't want to loose their entitlements. The problem is escalating and will likely result in the fall of the European union.