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Doomsday for the Euro Area: Causes, Variants and Consequences of Breakup
Department for Macroeconomics, DIW Berlin, Mohrenstraße 58, 10117 Berlin, Germany
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
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.
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.
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.