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"...Germany should leave the Eurozone."

"(The) asset management and investment banking subsidiary (of French bank PBCE) Natixis, released a zinger of a study designed to influence policy. It's titled, "On a purely macroeconomic basis, Germany should leave the Eurozone."

Germany should get out of the way so that the remaining countries can devalue in a big way what would remain of the euro. France, Italy, Spain, Greece, etc. have always done that, one way or the other, before the euro took that nifty tool of sudden money destruction away from them. It would be the ideal solution for France.

After conceding that there may be non-economic reasons to form a monetary union, the report lays out five reasons why Germany needs to exit. But it offers an alternate solution: if Germany wants to stay, it needs to pay.

The five reasons:

  1. Asymmetries in the economic cycles.
  2. Weakening economic ties between Germany and the rest of the Eurozone.
  3. Structural asymmetries.
  4. Different needs in exchange rates.
  5. Incapacity in the rest of the Eurozone to impose "internal devaluation."

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Nov 25th, 2013 at 11:33:05 PM EST
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