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Currency Disintegration: Two Scenarios of Withdrawal

Author

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  • Dirk Meyer

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.

Suggested Citation

  • Dirk Meyer, 2012. "Currency Disintegration: Two Scenarios of Withdrawal," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 58(3), pages 171-191.
  • Handle: RePEc:aeq:aeqaeq:v58_y2012_i3_q3_p171-191
    DOI: 10.3790/aeq.58.3.171
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    Citations

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    Cited by:

    1. Malinen Tuomas & Nyberg Peter & Koskenkylä Heikki & Miettinen Sami & Ala-Peijari Jukka & Törnqvist Stefan & Berghäll Elina & Mellin Ilkka, 2018. "How to Leave the Eurozone: The Case of Finland," The Economists' Voice, De Gruyter, vol. 15(1), pages 1-16, December.

    More about this item

    Keywords

    currency withdrawal; euro disintegration; disintegration inflation; European government debt crisis; parallel currency;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E59 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Other
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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