Currency Disintegration: Two Scenarios of Withdrawal
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Currency Disintegration: Two Scenarios of Withdrawal
Applied Economics Quarterly, Vol. 58 (2012), Iss. 3 : pp. 171–191
6 Citations (CrossRef)
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Institut für Volkswirtschaftslehre, Lehrstuhl für Ordnungsökonomik, Helmut-Schmidt-Universität, Universität der Bundeswehr Hamburg, 22043 Hamburg.
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Abstract
The article deals with a member's exit from the Eurozone to solve internal problems with the existing currency union. Taking Greece and Germany as examples, this paper examines the advantages and disadvantages, the process itself, and the consequences of withdrawal for both the exiting member and the monetary union as a whole. Additionally, the concept of parallel currencies (a national currency alongside the Euro) is outlined to address costs and related issues.
JEL Classifications: E42, E59, F34