How to run a Self-Sufficient Economy (Autarky)?

[ingyaningya]

Lets say a country from the EU wanted to break away and wanted to create it's own currency, and decided to become self-sufficient, an Autarky. First, how would an Autarky be ran to have a good economy, and Second, how would it circulate the Euro out to replace it with it's own currency?

 

[myp]

What country specifically are you thinking of here because the answers vary based on each situation. The answers will also vary based on who you talk to since a lot of it is based on various theories and can be subjective.

As for replacing the Euro, it'd be an interesting situation because if the country was anyone other than Germany or France, an announcement of leaving before the fact would mean everyone would try to move their money into Euros to other countries (and even if it wasn't announced beforehand that would happen as soon as it was). There are better ways to ease into it but there would certainly be some interesting situations.

 

[afghan]

i agrees with Mr. myp.... the country should be named, and the answers are depended on their situations.....

for example if Germany leaves the EURO-Zone it would effect the euro but not its own currency......

 

[ingyaningya]

What country specifically are you thinking of here because the answers vary based on each situation. The answers will also vary based on who you talk to since a lot of it is based on various theories and can be subjective.

As for replacing the Euro, it'd be an interesting situation because if the country was anyone other than Germany or France, an announcement of leaving before the fact would mean everyone would try to move their money into Euros to other countries (and even if it wasn't announced beforehand that would happen as soon as it was). There are better ways to ease into it but there would certainly be some interesting situations.

Okay, the country is Germany.

 

[myp]

Okay, the country is Germany.

In that case the question becomes why would Germany want to leave the EU? They are doing fine- it is the burden of the other countries that is hurting them, but the net effect on Germany over the years has almost indisputably been positive. If Germany leaves and does not form a union with other EU nations, the Euro project is essentially over.

 

[DodgeFB]

In that case the question becomes why would Germany want to leave the EU? They are doing fine- it is the burden of the other countries that is hurting them, but the net effect on Germany over the years has almost indisputably been positive. If Germany leaves and does not form a union with other EU nations, the Euro project is essentially over.

Maybe I am wrong. I think if Germany and France pulled out, the EU would fold up like a child's backyard tent.:unsure:

 

[afghan]

Maybe I am wrong. I think if Germany and France pulled out, the EU would fold up like a child's backyard tent.:unsure:

you are right respected old man

If Germany and France pulled out the EUROPEAN DREAM will be shattered!

 

[afghan]

In that case the question becomes why would Germany want to leave the EU?

If they don't want to leave EU but they want that nations like Greece should be out of EU becuase it is badly hurting her

 

[ingyaningya]

In that case the question becomes why would Germany want to leave the EU? They are doing fine- it is the burden of the other countries that is hurting them, but the net effect on Germany over the years has almost indisputably been positive. If Germany leaves and does not form a union with other EU nations, the Euro project is essentially over.

It is just hypothetical. How would it be done?

 

[myp]

If they don't want to leave EU but they want that nations like Greece should be out of EU becuase it is badly hurting her

Well they don't want Greece to leave right now because of contagion fears.

 

[myp]

It is just hypothetical. How would it be done?

There are many different things that can be done. It really depends on what they want to do. They could go back to the Deutschmark, create a separate "core" Euro zone, etc. Any such move would probably mean increased confidence in the currency they stick with so they might try to inflate it to counter that. There are A LOT of moving parts here though so again it really depends on the situation and what they are trying to do.

 

[afghan]

Well they don't want Greece to leave right now because of contagion fears.

I didn't mean that they will throw them outside but due to a little trouble or for some huge trouble in germany and france this type of debate was started that why not to leave them or if we will leave them what would happen then..

 

[myp]

I didn't mean that they will throw them outside but due to a little trouble or for some huge trouble in germany and france this type of debate was started that why not to leave them or if we will leave them what would happen then..

Yea it's been debated, but the current leadership doesn't seem to want to give up on the Euro yet.

 

[ingyaningya]

There are many different things that can be done. It really depends on what they want to do. They could go back to the Deutschmark, create a separate "core" Euro zone, etc. Any such move would probably mean increased confidence in the currency they stick with so they might try to inflate it to counter that. There are A LOT of moving parts here though so again it really depends on the situation and what they are trying to do.

Let's say a new government comes to power and overthrows the BRD, and wants to become totally independent.