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Abstract
The problems with a single currency in Europe are neither temporary nor curable. Any persistent defence of the euro will result in a long-lasting recession and high unemployment in countries using fiscal austerity to pursue ‘internal devaluation’. It may lead to a revival of populist and nationalist movements, political collapse and disorderly eurozone break-up. This article argues for a controlled segmentation of the eurozone via the exit of the most competitive countries and an agreement on a new European currency coordination system.
Keywords: Eurozone crisis; internal devaluation; deflation; currency devaluation; Euro break-out; future of Europe
Published Online: 2019-11-30
Published in Print: 2013-02-01
© 2019 by Walter de Gruyter Berlin/Boston
