Tencent Financial News Beijing April 17, Reuters published review article entitled “The euro could re-invigoration, now full-text are summarized as follows:

now faced by the euro’s problems can be resolved without the collapse of the currency? In the last week, Spain’s 10-year bond yields jumped sharply to 6% of the debt crisis in the euro area appears to have re-ignited, apparently, to solve this problem is particularly urgent. However, the market consensus is restored to the state seems to have been a possibility. Because the re-use of European countries in its own currency at the economic, political and legal complexity is enormous, which makes the 17 euro zone countries are now trapped in a no way out of the cage.

UK retail chain Next Wolfson, CEO of Simon, the Wolfson had earlier established the Wolfson Prize in Economics size of up to £ 250,000, designed to be able to find to find a solution European debt crisis. The scale of the prize after the Nobel Prize for Economics. Wolfson is the hope that this can bring the creative juices sales of its products.

If re-using drachmas (drachma, Greece adopted the euro currency before), pesetas (peseta, Spain, the old currency), lire (the lira, Italy, the old currency), will face many problems the most difficult to resolve is how to prevent the bank suffered a run avoid this eventually led to financial chaos. If the depositors that the euro will be converted to the ancient currency, its own currency is bound to immediate, substantial depreciation, then the depositors will undoubtedly choose from the bank divestment.

in Greece have been similar cases. If Greece exact their old currency, drachma will be re-used, then the currency is bound to be a sell-off. To make matters worse, the negative risks is not just confined to Greece.

other peripheral countries in the euro area depositors will be their deposits withdrawn from the bank, the bond markets of these countries will be frozen. If people think that the devaluation of the Italian lira and the peseta will restart the credit, then there will be what people are willing to lend money to Italy or Spain?

broke into finals contention of the Wolfson Prize in Economics players proposed program does not know. Euro-zone countries to exit the program of the euro should be placed in secret, and then on Friday night was suddenly proposed. This is not real the occasion . The 17-country euro zone government how can so much controversy and dispute matters in secret? A democratic country without a parliamentary vote, how to be such a landmark matters on behalf of its people make a decision? Even if this matter is confidential could not prevent the crisis from spreading to other countries.

a, Catherine Dobbs, private investors have put forward a solution. For the disintegration of the edge, each of the euro, regardless of the country in which use can be replaced with two new currency to a basket of currencies. , Catherine Dobbs, with eggs as a metaphor. The euro area can be divided into two sub-areas: the yolk and white of two parts. For reasons of certain prejudices, she will peripheral Eurozone countries (eg Greece, Spain, etc.) the ratio of egg yolk, and the core countries of the euro area (such as Germany, the Netherlands, etc.) using protein instead. Her idea is for every one euro can be a fixed ratio of protein and egg yolk to replace, for example, the approximate its economies of scale as a conversion. Then for every euro, one can obtain 70% egg yolk and 30% of the protein.

to replace the complete, natural protein and egg yolk can be separated to assume that the appreciation of the egg yolk, protein depreciation. New currency contracts will yolk and white are common pricing. Existing euro contracts denominated in a fixed proportion of the yolk and white. The only exception is the employment contract: their needs through the new local currency re-valuation. This will lead to the decline in the wage levels of the peripheral Eurozone.

but for those who wish to regain the competitiveness of countries, the wage level is a crucial factor.

the benefits of this approach is not to cause peripheral Eurozone countries people have to withdraw their deposits, the value of the euro’s value and its local currency. The result is that, the disintegration of the euro area without secret. But it is undeniable, Catherine Dobbs, the proposal will lead to a political issue. Ie, depositors of the peripheral Eurozone countries are willing to get a mixture of yolk and white, and the depositors of the core countries in the euro zone but hate it. In theoretical terms, the basket currency is still the same as the value of one euro. Those proteins currency depreciation peripheral workers will not be satisfied, because the decline of wage levels, will eventually be many people facing bankruptcy dilemma.

author Hugo – Dixon of Hugo Dixon, co-founder and editor in chief of Reuters Breakingviews. (Wen rice bowl)