Ed Dolan author of There Aint No Such Thing As A Free Lunch turns his attention to the Euro...
In a recent paper, Arnab Das and Nouriel Roubini compare exit from the euro area to a divorce.
When we hear that friends are heading for the divorce court, two questions immediately come to mind. Why did this arrangement, which seemed like a good idea at the time, go bad? What is the best way out? In answering these questions for countries now facing the prospect of forced or voluntary exit from the euro, it is helpful to look for lessons from other fixed-rate arrangements that have gone bad.
Poland’s experience in the 1990s provides one such example.
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