The closest experiment along these lines is probably Argentina\’s exit in 2002 from its dollar exchange-rate peg (embodied in its currency board) to a floating regime that depreciated the peso by 300% in the first three months.
I don\’t think you can, can you? Depreciate by 300%?
I think I know what they mean, the peso went from 1 to the dollar to 3 to the dollar (or maybe 4) but that would be a 66% devaluation (or 75%) rather that 300% wouldn\’t it?
The rest of the piece is what Argentina tells us about how tough it would be for a country to leave the euro.
Which indeed is true, it would be very tough and not a happy time for anyone.
But that isn\’t actually the question that needs to be asked. The one that does is whether leaving would be a more painful experience than staying in…..and in the absence of either full fiscal union or selective debt defaults there are plenty who would argue that staying in will be the more painful option.