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50 ways to leave yer Euro - lessons from Poland (early 90s)

Written by Ed Dolan Friday, 13 April 2012 17:18
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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.

 

(See long form here, short form here.)

 

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.

 

To read the full article, click here.

 

Last modified on Friday, 13 April 2012 17:36

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