Germany should leave the Euro?

Fascinating idea.  Should Germany leave the Euro to save it? Would these be a less catastrophic result than several Southern countries leaving? What does this mean for runs on banks?

It’s not all straightforward. We could still end up with a run on non-German banks since the  appreciation of the Deutschmark would correspond with a depreciation of the leftover-Euro against all other currencies. So the risks to depositors in Greek banks are similar to what they were before.

Interesting idea nonetheless.

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.

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