by Andrew Stuttaford

No, it’s not my joke, although I wish it was.

Meanwhile Macro Man vents:

Cyprus is…in the early stages of experiencing what it would do were it to leave the Euro: (i) a household liquidity crisis, (ii) a paralysed financial system, (iii) a collapse in monetary velocity, (iv) a large loss of national wealth, (v) capital controls, (vi) shortages of imported basic goods [trade credit for Cyprus now non-existent],  and (vii) an exceptionally deep recession.

In short, as a friend points out:

All the costs of leaving the euro without the benefit of actually leaving.

Nicosia, call Reykjavik.

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