What if Germany left the Euro-Zone?

By | April 27, 2012
A crazy idea that just occurred to me, maybe because it's too late at night: if Germany is indeed the only country to disagree on how to save the Euro, what would happen if Germany left the Euro instead of picking on other nations to leave? Then the rest of the nations can agree on managed devaluation of the Euro – let's face it, intentional devaluation is a good way to attract foreign investment – without requiring Germany to bear the burden of 'other countries problems'. Sure, it would be more difficult for business, but business would get the loser's side anyway if all the other countries leave the Euro one by one.

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NYT: For Germany, Austerity Elsewhe
The elections in France and the government’s collapse in the Netherlands should serve as warnings for Germany, which still insists on austerity elsewhere in the euro zone.

7 thoughts on “What if Germany left the Euro-Zone?

  1. Marcos Capixaba

    There is no crisis at Euro zone neither USA, it is all about market lobby to raise the interest rates to roll the debt. So if USA has a debt with an interest rate X and it could trade it for another Y with higher interest rates its good trade. Its all about asset management on the markets.

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  2. Sophie Wrobel

    Oh, I don't think it is good for Germany if it leaves the Euro Zone – it's going to be Switzerland revisited. But if the Euro zone is going to collapse anyway, what would be the better alternative – letting nations fall away one by one leaving a large outstanding debt to burden, or take away the supporting powerhouse before the debt problem amasses more than now?

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  3. Euro Crisis News Overview

    Germany has absolutely no reasons to wish for ANY country to leave the euro zone…
    It provides them with WAY to much of a competitive advantage, gives them almost full employment, and only cost a relative small amount of money…

    Also, no matter which country left the euro zone, the inherent faults in the construction would still be there. The less competitive countries would still lose out…
    Even if the euro was only two countries, the same problems would occur…

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  4. Karsten Wegmeyer

    to be honest that would be an extremly bad idea!

    The new german currency would get an extreme high evaluation. Goods from our Export-Economy would get much too expencive in other countries and economy would go down imediatly. A short moment where all of us could by cheap oil would be followed by an extrem long phase of decreasing economy and raising unemployment!

    The other countries in opposit will have e short time where the euro is down and economy could come up. Lacking the infrastructure for such an speed up economy would go down again. Oil and other Import-Goods would get much to expencive.

    It is good for us that some countries are tearing down the Euro and it is good for them that some countries ( not just germany alone) stabelizes it. Things are quite good as they are.

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  5. John Bump

    Not quite disaster, but Germany is a very major economic force: it would be similar to the US losing California.

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