Greece leaving the EMU: how would it work?

[Martinghoul]

Quote from trefoil:
I read the original two (there were two) years ago, and they were a lot more detailed. It caused a bit of a sensation, since it meant a respectable mainstream guy was questioning the durability of the euro.
The part about the NCBs still issuing the notes and still actually carrying out open market operations at the direction of the ECB was the part that stuck in my memory, as it shows that all the apparatus for reverting to a national currency is still in place. Which is interesting.

Indeed, but he's not the first by a long shot... Today I was reading some of the earlier work that the ECB paper I attached refers to. Some of these papers are from the last century .

The key thing is that the NCB carry out some OMOs, but not all, by a long shot. Moreover, the NCBs are effectively held hostage through their reserves that, collectively, form ECB's capital. But you're right, it's very interesting.

 

[DrEvil]

1750's America ... British subjects (otherwise known as Americans) leaving the bosom of the British Empire: how would it work?