Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/69997
Authors: 
Huck, Steffen
Valasek, Justin Mattias
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper: Monetary Policy and International Finance 4116
Abstract: 
In this note, we argue that the Eurozone needs an institutional exit mechanism to enhance Eurozone stability, and propose modifications to the Dobbs' NEWNEY mechanism, the only mechanism that satisfies the twin properties of eliminating incentives for intra-Eurozone capital flight and maintaining Eurozone price stability. Our modifications eliminate moral hazard, allow for a fair distribution of costs (between and within countries) and are also appropriate for the exit of a fiscally strong country.
Subjects: 
Eurozone
Eurozone exit
price stability
JEL: 
E44
E52
Document Type: 
Working Paper

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