BLOG: What would a euro breakup look like?

DEBT CRISIS BLOG

The German central bank told me in no uncertain terms last week it was not printing Deutsche Marks, despite growing speculation - and a number of sources - pointing to the contrary.

Regardless of what the Deutsche Bundesbank says, the world is already taking steps to make sure it can cope in the event of a single currency breakup. Anecdotal evidence suggests employment agencies in Europe are writing clauses into contracts so that the equivalent wage in another currency will be paid to employees if the euro dissolves. Meanwhile, companies across the globe are trying to limit the amount of cash they hold in some European states, only selecting banks which operate in ‘core' nations, and using derivatives to limit exposure to counterparty risk. The truth of the ma...