An Interesting Study By Bank Of America Merrill Lynch Posits Italy As The Country Most Likely To Leave The Euro First
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- Created: Friday, 13 July 2012 09:16
The analysis in the report offers interesting and unexpected possibilities that may result from the European crisis, one of which is the fact that Germany is the country that could most easily exit, yet exiting would hold the least advantage for Germany.
Italy, on the other hand, has plenty of incentive to exit and could do so quite easily. Italy would likely experience better economic growth and would become more competitive by exiting. Those benefits are greater for Italy than for Greece according to game theory.
The report also said that Germany could encourage Italy to stay in the currency but that its ability to provide such incentive may be limited.
