Yeah but no but yeah but

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So if the euro breaks up, where are those currency values going to go?

As Jeremy Warner points out, they\’re not actually that far out of whack.

Except these are the numbers against the US$. Given how much more the eurozone economies are integrated with each other than they are exposed to the $, what really matters is the numbers relative to each other. To life as it is lived at least.

A 25-30% devaluation of the peseta against the DM…..well, that might actually help quite a lot. Get the Germans buying cheap Spanish property again maybe?

However, it also shows the problem of the mechanics of the break up. If we all knew that the peseta was going to devalue by 30% next week then there wouldn\’t be any euros left in Spain, they\’d all be in Germany, waiting for the devaluation.

Which is something of a problem.

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