UBS: What if Greece goes?

The Euro at once embodies too little and too much government, explains UBS in a recent report. The single currency lacks many of the institutions generally assumed to be necessary in a functioning monetary union. At the same time, according to the bank, those institutions that do exist are structured in a particularly rigid manner, and do not exhibit the ability to adapt that would allow the changing circumstances of the Euro crisis to be managed.

UBS believes that Greece remains in the Euro, as the costs of departure are excessive to both Greece and the Euro area.

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May 22, 2012