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What Happens if Germany Exits the Euro?

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  • Marshall Auerback
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    Abstract

    Like marriage, membership in the eurozone is supposed to be a lifetime commitment, “for better or for worse.” But as we know, divorce does occur, even if the marriage was entered into with the best of intentions. And the recent turmoil in Europe has given rise to the idea that the euro itself might also be reversible, and that one or more countries might revert to a national currency. The prevailing thought has been that one of the weak periphery countries would be the first to call it a day. It may not, however, work out that way: suddenly, the biggest euro-skeptics in Europe are not the perfidious English but the Germans themselves.

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    Bibliographic Info

    Paper provided by Levy Economics Institute in its series Economics Policy Note Archive with number 11-01.

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    Date of creation: Feb 2011
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    Handle: RePEc:lev:levypn:11-01

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