Is Europe Headed Toward A Two-Currency System?

Filed under: Forecasts, Financial Crisis

Could Europe emerge from its debt crisis with two currencies -- one for wealthier countries, and a separate currency for debt-plagued countries? It's possible.



The wealthier countries would the euro. The poor countries -- Greece, Spain, Portugal, Italy, and possibly Ireland, could create a new monetary union with a new currency, perhaps called 'the Medi' -- short for Mediterranean.



The chief advantage of the new currency would be an ability by the poor countries to more-effectively monetize their existing debt, and improve their global competitiveness on a cost basis. In short order, traveling to Greece, Italy, Spain, etc. would become very cheap for major currency holders.

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Is Europe Headed Toward A Two-Currency System? originally appeared on BloggingStocks on Wed, 26 May 2010 17:30:00 EST. Please see our terms for use of feeds.

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Spain - Italy - Ireland - Portugal - Greece

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