The euro zone is full of stricken countries these days, yet near-hysteria usually greets the idea that these countries' best way forward would be to leave the currency bloc. The great fear is that to reintroduce a national currency, a country would have to forcibly redenominate private assets and liabilities in the process. For firms, households and investors, uncertainty about whether their euros will eventually be confiscated and replaced with a debased national currency could lead to capital flight, economic chaos and years of litigation, if not worse.
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