An interesting thought experiment on the website of the German magazine ‘Cicero’ on the topic of a potential German withdrawal from the Euro
It follows generally what has been published many times by many people. The new German currency would drastically appreciate, and a wealth of problems spring from that. Although the Cicero case surely includes some assumptions which are debatable (e.g. the exact policy response of the countries still left in the Eurozone), the overall argument remains compelling.
Although the Euro-sceptics of the newly formed AfD party are able to eloquently and knowledgeably describe the deficiencies of the euro, I still haven’t heard a convincing explanation of how disastrous consequences in case of a withdrawal are meant to be avoided.
Next time ill be looking at the question of whether the barrier-free market in Europe could be maintained in case of a Eurozone breakup (or German withdrawal).