Video: Shortlist on the Wolfson Economics Prize for eurozone contingency planning
I got these videos from the Policy Exchange website highlighting the Wolfson Economics Prize.
The Wolfson Economics Prize, which challenges the world’s brightest economists to prepare a contingency plan for a break-up of the Eurozone, today (3rd April, 2012) unveiled a shortlist of five finalists.
The shortlisted entries, though all very different from each other, provide valuable ideas about how best to manage a member state leaving the euro.
The judges have given the finalists the opportunity to address key questions about their entry. Finalists will be given until the 29th of May to develop and resubmit their entries. Everyone who has progressed to this stage will be guaranteed a £10,000 share of the prize. The winner(s) of the Wolfson Economics Prize will be announced on the 5th of July.
The finalist’s essays can be seen below
I like Jonathan Tepper’s commentary about currency unions over the past century. His analysis says that the breakups have been feasible. The real problem in Europe’s case is overindebtedness meaning that the potential exiting euro zone countries cannot service their existing debt burdens at par at prevailing interest rates. In my view, the easiest way to deal with this problem is to convert the euro debt at par back into a national currency and allow that currency to float. See "How and why Greece will leave the euro zone".
a) Catherine Dobbs – The NEWNEY approach to unscrambling the Euro
b) Roger Bootle – Leaving the euro: A practical guide
c) Jonathan Tepper – A Primer on the Euro Breakup: Default, Exit and Devaluation as the Optimal Solution
d) Jens Nordvig – Planning for an orderly break-up of the European Monetary Union
e) Neil Record – If member states leave the Economic and Monetary Union, what is the best way for the economic process to be managed to provide the soundest foundation for the future growth and prosperity of the current membership?
Here are the videos explaining the plans of four of the five finalists. Enjoy.
Source: Policy Exchange