Amiel, D. & Paul-Adrien, H. (2015) “Is there an easy way out? Private marketable debt and its implications for a Eurozone break-up“, VoxEU Organisation, 15 Μαρτίου.
As the Eurozone crisis lingers on, euro exit is now being debated in ‘core’ as well as ‘periphery’ countries. This column examines the potential costs of euro exit, using France as an example. The authors estimate that 30% of private marketable debt would be redenominated, but since only 36% of revenues would be redenominated, the aggregate currency mismatch is relatively modest. However, the immediate financial cost of exiting the euro would nevertheless be substantial if public authorities were to bail out systemic and highly exposed companies.
As the Eurozone crisis lingers on, debates on a potential demise of the single currency have been revived. Political parties advocating or contemplating an exit have not reached the same audience in every European country, but they are everywhere on the rise. A euro exit, which was once only contemplated for ‘periphery’ countries as a consequence of high financial distress, comes to be seen as a political choice worth debating in ‘core’ countries.
Σχετικές αναρτήσεις:
- Kobielarz, M., Uras, B. & Eijffinger, S. (2015) “Sovereign debt, bailouts and contagion in the Eurozone“, VoxEU Organisation, 12 Μαρτίου.
- Ardagna, S. & Caselli, F. (2015) “The Political Economy of the Greek Debt Crisis: A Tale of Two Bailouts“, Centre for Economic Performance Special Paper, Special Paper No. 25, Ιανουάριος 2014.
- Interview: “Five minutes with Philippe Legrain: “The Eurozone has become a glorified debtors’ prison”, LSE EUROPP, 09 Μαρτίου 2015.