Währungsdesintegration in der EURO-Zone

Dirk Meyer ()

Review of Regional Research: Jahrbuch für Regionalwissenschaft, 2010, vol. 30, issue 1, 45-70

Abstract: The concept of optimum currency areas as well as historical examples of failed monetary unions make the success of the EURO-area doubtful. Currently the deficits of public-sector budgets as a result of spending(commitment)s caused by the salvaging of banks and the promotion of economic activity as well as by ensuring the reliability performance of crises-ridden public welfare systems are threatening the solvency of various member states of the EURO area. At the same time, a national insolvency and an increasing rate of inflation may be strategies of debt relief in subsequent years. Both framework conditions form the basis of two hypothetic scenarios of member states bidding farewell to the EURO area illustrated by the examples of Italy and Germany. In addition to the choice of the future exchange-rate system and the production and provision of the new currency, it is necessary to consider a two-tier rate of exchange. Dangers of disintegration on account of inflation would exist where EURO holdings are inadequately reduced and where members increasingly bid farewell to the EURO area. Regulations governing an organized exit as well as a graduated disintegration process on the basis of a national parallel currency are deemed to be urgently required but nevertheless utopian. Copyright Springer-Verlag 2010

Keywords: E42; E52; E58; F15; F34; G01 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10037-009-0040-8 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jahrfr:v:30:y:2010:i:1:p:45-70

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10037

DOI: 10.1007/s10037-009-0040-8

Access Statistics for this article

Review of Regional Research: Jahrbuch für Regionalwissenschaft is currently edited by Thomas Brenner and Georg Hirte

More articles in Review of Regional Research: Jahrbuch für Regionalwissenschaft from Springer, Gesellschaft für Regionalforschung (GfR) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().