Leaving the Euro | 72 comments (72 topical, editorial, 0 hidden)

Sorry, sloppy writing.

I meant to say (but indeed said something else entirely) that I was all for ignoring constraints of the ~~Suicide~~Stability and Growth pact, but that it would not be enough in the long run because of article 123, or at least the way it is being interpreted.

Ignoring deficit limits would only take us so far economically, although politically it might infuriate the Germans enough to make them leave, which would markedly improve things of course.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Mon Dec 1st, 2014 at 07:05:22 AM EST
[ Parent ]

Re: Leaving the Euro (none / 1)

Individual countries could threaten add alternative currencies/payment systems, subject to capital and exchange rate controls, in parallel to the Euro and just ignore any protests. They should actually set in motion the process with public discussion on the design of the currencies, etc. Were they to call them Franc, Lira, Peso, Drachma it would make the message clear: the ECB is allowing 25%+ unemployment and deflation in much of the EuroZone so we are going to do something about it.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Dec 1st, 2014 at 10:46:46 AM EST
[ Parent ]

Re: Leaving the Euro (none / 1)

Not to forget that national currencies existed in parallel with the euro between 1997 and 2001.

by afew (afew(a in a circle)eurotrib_dot_com) on Mon Dec 1st, 2014 at 11:15:28 AM EST
[ Parent ]

Re: Leaving the Euro (none / 1)

More like 1999 and 2001 but the exchange rate was fixed already. I would expect that control over the issue of national currencies was already transferred to the Eurosystem in 1999.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Carrie (migeru at eurotrib dot com) on Mon Dec 1st, 2014 at 11:36:27 AM EST
[ Parent ]

Re: Leaving the Euro (none / 0)

Right.

Euro - Wikipedia, the free encyclopedia

The currency was introduced in non-physical form (traveller's cheques, electronic transfers, banking, etc.) at midnight on 1 January 1999, when the national currencies of participating countries (the eurozone) ceased to exist independently. Their exchange rates were locked at fixed rates against each other. The euro thus became the successor to the European Currency Unit (ECU). The notes and coins for the old currencies, however, continued to be used as legal tender until new euro notes and coins were introduced on 1 January 2002.

by afew (afew(a in a circle)eurotrib_dot_com) on Mon Dec 1st, 2014 at 12:00:39 PM EST
[ Parent ]

Re: Leaving the Euro (4.00 / 2)

Ah, fantastic...

This is the Maastricht treaty (1992):

Article 105a
l. The ECB shall have the exclusive right to authorize the issue of banknotes within the Community. The ECB and the national central banks may issue such notes. The banknotes issued by the ECB and the national central banks shall be the only such notes to have the status of legal tender within the Community.

Member States may issue coins subject to approval by the ECB of the volume of the issue. The Council may, acting in accordance with the procedure referred to in Article 189c and after consulting the ECB, adopt measures to harmonize the denominations and technical speci/ications of all coins intended for circulation to the extent necessary to permit their smooth circulation within the Community.

Lisbon treaty (2007):

Article 128

The European Central Bank shall have the exclusive right to authorise the issue of euro banknotes within the Union. The European Central Bank and the national central banks may issue such notes. The banknotes issued by the European Central Bank and the national central banks shall be the only such notes to have the status of legal tender within the Union.

Member States may issue euro coins subject to approval by the European Central Bank of the volume of the issue. The Council, on a proposal from the Commission and after consulting the European Parliament and the European Central Bank, may, adopt measures to harmonise the denominations and technical specifications of all coins intended for circulation to the extent necessary to permit their smooth circulation within the Union.

See the subtle and important difference?

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Carrie (migeru at eurotrib dot com) on Mon Dec 1st, 2014 at 12:05:58 PM EST
[ Parent ]

Re: Leaving the Euro (none / 0)

How did that happen? Did really anybody put this in to mean that parallel currencies should be legal?

by rz on Mon Dec 1st, 2014 at 12:13:41 PM EST
[ Parent ]

Re: Leaving the Euro (4.00 / 2)

They forgot that currencies other than the Euro could exist...

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Carrie (migeru at eurotrib dot com) on Mon Dec 1st, 2014 at 12:23:11 PM EST
[ Parent ]

Re: Leaving the Euro (none / 1)

Hoist on their own petard! It says nothing here about issuance of other currencies, such as Berkshire Bucks, or, indeed, such existing practices as Business Exchange dollar credits.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Dec 1st, 2014 at 11:35:08 PM EST
[ Parent ]

Re: Leaving the Euro (none / 0)

A naive person like myself might ask how all these credit mechanisms, guarantees, etc. are not in themselves alternate currencies.

Experience keeps a dear school, but fools will learn in no other. -- Dr Johnson

by melvin (melvingladys at or near yahoo.com) on Tue Dec 2nd, 2014 at 02:02:29 AM EST
[ Parent ]

Re: Leaving the Euro (none / 1)

An alternate currency circulates.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Carrie (migeru at eurotrib dot com) on Tue Dec 2nd, 2014 at 04:52:40 AM EST
[ Parent ]

Re: Leaving the Euro (none / 0)

In the USA BX operates nation wide. My brother exchanged the cost of chassis and alignment work for Tuscon and Pima County agencies for travel and lodging in various travel destinations, as well as treating us to some of the finer restaurants in Tuscon.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Dec 2nd, 2014 at 10:07:02 AM EST
[ Parent ]

Leaving the Euro | 72 comments (72 topical, 0 editorial, 0 hidden)

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