Sean King

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Knoxville, Tennessee, United States

Monday, January 26, 2009

Contemplating Europe's Monetary Future

Megan McArdle: If the global recession deepens, and both fiscal and monetary stimulus remain closed to the eurozone's problem children, eventually their governments are going to have to make a stark and ugly choice between leaving the euro zone, or standing idly by while their economies crater and the rioting spreads.

It will probably take only one exit to start a sizeable exodus. Much of the benefit of eurozone membership for those countries comes from the perceived integrity of the zone. Once one member has exited, creditors are going to take a long, hard look at the remaining members.

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