Int. J. Financ. Stud. 2013, 1(1), 1-15; doi:10.3390/ijfs1010001
Article

Doomsday for the Euro Area: Causes, Variants and Consequences of Breakup

Ansgar Belke 1,2,* email and Florian Verheyen 2
1 Department for Macroeconomics, DIW Berlin, Mohrenstraße 58, 10117 Berlin, Germany 2 Department of Economics, University of Duisburg-Essen, Universitätsstraße 12, 45117 Essen, Germany
* Author to whom correspondence should be addressed.
Received: 5 April 2012; in revised form: 18 June 2012 / Accepted: 20 June 2012 / Published: 6 July 2012
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Abstract: In this paper we describe the genesis of a doomsday scenario and discuss potential causes and motivations for a breakup of the euro area. For this purpose, we differentiate between the departure of weak and strong countries, and examine the impact of the reintroduction of a national currency on domestic debt, the domestic banking sector, EU membership and the freedom of trade. We also briefly analyze the social and political costs of the accompanying social disorder.
Keywords: banking crisis; debt crisis; exchange rates; euro; optimum currency area; secession

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MDPI and ACS Style

Belke, A.; Verheyen, F. Doomsday for the Euro Area: Causes, Variants and Consequences of Breakup. Int. J. Financ. Stud. 2013, 1, 1-15.

AMA Style

Belke A, Verheyen F. Doomsday for the Euro Area: Causes, Variants and Consequences of Breakup. International Journal of Financial Studies. 2013; 1(1):1-15.

Chicago/Turabian Style

Belke, Ansgar; Verheyen, Florian. 2013. "Doomsday for the Euro Area: Causes, Variants and Consequences of Breakup." Int. J. Financ. Stud. 1, no. 1: 1-15.

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