May 3, 2012

Euro Currency: A Breakup Is Going To Be A Mess

If you can't either devalue the euro to a real depreciation, inflate yourself, or grow yourself out of this problem, or deflation is not going work, the only solution is going to be to give up the euro and go to a national currency.

But if enough of those countries do that, the collateral damage in terms of losses to the creditors is going to be massive. So a breakup is going to be a mess. - in CNN

Related: iShares MSCI Germany Index Fund ETF (EWG), iShares MSCI Italy Index ETF (EWI), iShares MSCI Spain Index ETF (EWP), EURUSD forex cross 

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.