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UK Economists: Euro Will Die Within Five Years

By    |   Friday, 11 Jun 2010 10:07 AM

Europe’s weakened state will send the euro to its death within the next five years, according to 12 of 25 major London economists surveyed by The Sunday Telegraph.

Of the others surveyed, eight expect the euro to make it at least until 2015, and five were undecided.

The euro recently dipped to a four-year low beneath $1.19. Ironically enough, it was just about a year ago that some experts said the dollar’s days as the world’s primary reserve currency were numbered and that the euro might replace it.

Now, the euro "may not even survive the next week," Douglas McWilliams of the Centre for Economics and Business Research told The Telegraph.

"The political implications (of euro disintegration) are likely to be far-reaching,” former Bank of England policymaker David Blanchflower told the paper.

“Germans are opposed to paying for others and may well quit."

While many experts say it would be the euro zones weak links who leave the currency, four of the economists surveyed said that Germany is the most likely candidate for an exit.

Not everyone forecasts a euro demise.

Warren Mosler, founder of broker/dealer AVM, says it can easily jump back to $1.60.

Euro zone members’ austerity plans will help the currency rebound by decreasing the amount of euros available, he told CNBC.

"I think there's a very good chance the euro would be stronger because of the austerity measures.”



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Europe s weakened state will send the euro to its death within the next five years, according to 12 of 25 major London economists surveyed by The Sunday Telegraph. Of the others surveyed, eight expect the euro to make it at least until 2015, and five were undecided. The...
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Friday, 11 Jun 2010 10:07 AM
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