(July 26, 2014 at 7:07 pm)Chuck Wrote:(July 26, 2014 at 6:39 pm)ManMachine Wrote: I suggest we do away with the single currency but maintain the trade links internal to the EU.
Loss of the common currency means the loss to europe's of the so called exorbitant privilege conferred by having one of the two reserve currencies of the world. As a result Europe would become much more susceptible to balance of payment crisis as it is forced to conduct all international trade in a foreign currency with the rest of the world. Since the European economy would represent increasingly small percentage of the world economy, external trade with non-European nations would become ever more important. The loss of exorbitant privilege would make make europe economically ever more vulnerable.
You could ringfence exchange rates within Europe, which is effectively what they did in the 70s and still maintain sovereign control over individual currencies. It's not as effective but it provided the platform for the Euro, plus any struggling member states would not drag down the entire currency, as we have seen recently.
MM
"The greatest deception men suffer is from their own opinions" - Leonardo da Vinci
"I think I use the term “radical” rather loosely, just for emphasis. If you describe yourself as “atheist,” some people will say, “Don’t you mean ‘agnostic’?” I have to reply that I really do mean atheist, I really do not believe that there is a god; in fact, I am convinced that there is not a god (a subtle difference). I see not a shred of evidence to suggest that there is one ... etc., etc. It’s easier to say that I am a radical atheist, just to signal that I really mean it, have thought about it a great deal, and that it’s an opinion I hold seriously." - Douglas Adams (and I echo the sentiment)
"I think I use the term “radical” rather loosely, just for emphasis. If you describe yourself as “atheist,” some people will say, “Don’t you mean ‘agnostic’?” I have to reply that I really do mean atheist, I really do not believe that there is a god; in fact, I am convinced that there is not a god (a subtle difference). I see not a shred of evidence to suggest that there is one ... etc., etc. It’s easier to say that I am a radical atheist, just to signal that I really mean it, have thought about it a great deal, and that it’s an opinion I hold seriously." - Douglas Adams (and I echo the sentiment)
