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Mechanically speaking, a currency crash is a run on a country's hard currency reserves. Since the €-Mark is hard currency for €-zone members (thanks to the ECBuBa's idiocy), a systemic bank run would be a currency crisis in every way that matters.

Of course, once you have to ration hard currency anyway, you might as well take the opportunity to repudiate your hard currency debts completely and exit from the €-zone. But that's a consequence rather than a cause of the run on the country's hard currency reserves.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Sep 9th, 2011 at 10:21:26 AM EST
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