6/07/2010

# 94, on the continuity of the Euro...

94. The Greek crisis ignited the question of a continuity for the Euro, because Germany would feel more comfortable if she can move back to a strong and stable Deutschmark... Greece on the other hand could master the deficit much easier if she could devalue the Drachma... However -besides the political risks- the financial costs associated to both moves (debt defaults for the first, and collapse for the second) may be still greater than by keeping the monetary union...