To Save the Euro, Establish Dual Currencies
Without a more radical, long-term solution to preserve the euro, structural weaknesses from the economic crisis in the EU will linger. In this bylined article in Forbes, Dr. Mazen Skaf of Strategic Decisions Group analyzes the obstacles facing the existing solutions and makes the case for the introduction of a dual currency system. Dr. Skaf is also quoted on this topic in Bloomberg Business.
Economic shocks affect each country differently, but the EU’s stability and growth pact limit member countries’ ability to manage their budget deficit. Dr. Skaf explains how a dual currency alternative would allow countries more flexibility, while still working alongside the euro. The European Central Bank would provide loans to support member countries through the transition, but would not extend support for a country’s primary expenses, which would be financed with a new local currency and subject to the country’s budgetary policy. Existing bank deposits in euros would remain.
View Dr. Skaf’s interview with CNBC Europe on this topic. For a more detailed analysis, download Dr. Skaf’s white paper.
Dr. Skaf has advised government authorities in the EMEA region on economic development, knowledge-based industries and infrastructure, and public-private partnerships.