One of the good or bad things of not knowing much about economy is that you can imagine things that can look quite good to you but you would not even dare to dream if you had the right knowledges. So here it comes my crazy solution for all the troubles of the euro and the eurozone:
The idea is quite simple: The world is each times more complex. So are we as a species, not be able to handle with two currencies at the same time?
Well, what I propose is that we in Europe use two currencies!
The idea is that you could move through Europe paying with euros and also with local currency. By doing that, who knows, maybe even the British could use the euros too.
My idea has two sides: On the one hand the euro would be introduced immediately in almost every country in Europe: it would be a kind of currency franca. And its use could extend even beyond the limits of Europe. It would be a currency associated with tourism. By law all the hotels, hostels, etc should take euros. In the same way that you can use Visa or Mastercard around Europe you would be able to use euros all around Europe. Would it be fabulous to be able to pay in Euros in London?
On the other hand the states would reinstate their national currencies again.
One could say that this could be the death of the euro but I think that it may be the only way to survive!: to give him another use! to see it as a way for people in Europe to move through Europe.
It could happen that the new Deutsche Mark could be the end of the euro but I think that if we see the euro as a currency to move through Europe it should not be such a bad currency.
And in this crazy idea … which would be the exchange rate of the euro? Well, Europe is full of economists who should know better than me! I imagine that the exchange rate could be related to a set of European currencies or just to the strongest currency.
In Andorra, they used to use the peseta and the franc. They should be experts in how two handle two currencies.
Another possibility to this crazy idea of me is that the ECB acts as a real central bank and starts helping ANY STATE that needs to be helped.
- Pound to Euro, US Dollar exchange rate: Sterling is currently holding above 1.2500 on interbank against the Euro (torfx.com)
- Euro at Risk of Survival (theepochtimes.com)
- Economic Scene: Leaving the Euro May Be Better Than the Alternative (nytimes.com)
- Greece: The anatomy of a default (finance.fortune.cnn.com)