Tuesday, September 4, 2012
Should Finland get out of the euro?
Everyone talks about Greece leaving the euro. Greece and the Greeks don't want to. Who in their right mind would buy a Greek government drachma-denominated bond? No one talks about the other side of the coin. If you were Finland, a small country with a 2011 GDP of $258 bn, and you were asked to jointly underwrite the debt of much bigger countries (~Spain's GDP $1491 bn), you had a AAA credit rating and a government surplus, would you not want to leave? Especially given that your cousins (Sweden, Norway) that are outside of the euro are thriving? I'll buy a Finnish markka bond, won't you?