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One question, if one member-state were to retire from the euro, how legitimate would be the claim that euro-denominated debts are in its own currency, and that a change first of name, then of value, would not imply a revaluation of the foreign debt in euros?

On principle, you can make a strong case for either view. In practice, the police force and court system which enforce a debt decide which currency it is denominated it. The creditor decides whether he views this as a default, but creditor memory of default times out after about a year and a half.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Mon Jul 23rd, 2012 at 03:18:11 AM EST
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