I am old enough that when I started as a trader we had a 2 tier Sterling deposit market.
I can also remember Sterling interest rates at 35% and also French Franc interest rates for overnight at 3000%.
It will make sense for the Euro to look at the credit of each member and introduce a similar 2 or 3 tier market.
This will stop the Euro collapsing.
Tier 1 = market rates
Tier 2 = market rates + 0.75%
Tier 3 = market rates + 2%
This will then save the Euro currency but give a credit spread for the countries rating.
I can also remember Sterling interest rates at 35% and also French Franc interest rates for overnight at 3000%.
It will make sense for the Euro to look at the credit of each member and introduce a similar 2 or 3 tier market.
This will stop the Euro collapsing.
Tier 1 = market rates
Tier 2 = market rates + 0.75%
Tier 3 = market rates + 2%
This will then save the Euro currency but give a credit spread for the countries rating.
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