When it comes to what’s going on overseas, it seems like all we hear are dire predictions like these. But it may not necessarily be so.
Jonathan Tepper — a portfolio manager, economist, chief editor of the independent global macroeconomic research service Variant Perception, and an American Rhodes Scholar — disagrees:
In contrast to the consensus view, he makes a compelling case in favour of any country that exits the euro — combined with a sizeable devaluation of its currency — in his recently-published paper on the eurozone crisis called “A Primer on the Euro Breakup: Default, Exit and Devaluation as the Optimal Solution”.
History is on Tepper’s side.
During the past century 69 countries have exited currency areas with little downward economic volatility. Furthermore, according to data from the IMF, the majority of largeRead More »