How to Abandon the Common Currency in Exchange for a New National Currency

Tuomas Malinen, Peter Nyberg, Heikki Koskenkylä, Elina Berghäll, Ilkka Mellin, Sami Miettinen, Jukka Ala-Peijari, Stefan Törnqvist

Research output: Book/ReportCommissioned report


The question of how to leave a monetary union has become an important economic issue during the last few years. Uncertainty relating to its costs tends to discourage political leaders from taking decisive steps towards an exit. This article provides thoughts on what the necessary steps are, what are the associated pitfalls, how they can be overcome, and how can an exit from a currency union be effectively managed to control associated risks and costs. Uninterrupted functioning of the payments system, political response and the solvency of the private and public institutions are shown to be the major determinants of the costs of an exit. Issues of public governance, such as legality of the exit, can become an issue only if political and public support for the exit is lacking.
Original languageEnglish
Number of pages39
Publication statusPublished - 2016
MoE publication typeD4 Published development or research report or study

Publication series

NameWorking Paper


  • monetary union
  • domestic currency
  • exchange rate


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