At the start of 2012, Variant Perception’s research team wrote a paper on the best way to break up the euro. A lot has happened since this paper was written. However, it still provides a clear, solid analysis of the problems leading up to the current situation. Importantly, it looks at previous currency breakups and how they happened. We highly recommend reading it for anyone who is interested in how currency breakups happen and what the likely consequences would be.
Default, Exit and Devaluation as the Optimal Solution
In this piece we look at the mechanics of a currency breakup and how it would happen. This piece is longer than most of our pieces and is a slightly more wonkish piece than usual, but the first two pages provide a summary of the entire piece. We look at previous currency breakups, how they happened, and what the consequences are and what the likely outcome is economically for any periphery country that exits the euro.
Click to download the report in full.