Exit from a Monetary Union Through Euroization: Discipline Without Chaos
17 Pages Posted: 10 Mar 2012
Date Written: March 2012
This paper studies the role of exit from a monetary union during a debt crisis. A monetary union, such as the European Monetary Union, needs to establish a procedure for exit as a tool to cope with debt default. The paper studies various forms of exit and argues that "Euroization" is both a credible and effective means of punishment for countries in default.
Suggested Citation: Suggested Citation