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

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

1,2,*  and 2
Received: 5 April 2012 / Revised: 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 banking crisis; debt crisis; exchange rates; euro; optimum currency area; secession
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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

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