This document is a research note from J.P. Morgan addressing client inquiries about the potential breakup of the European Monetary Union (EMU). It answers 10 common questions regarding the legal, economic, and financial implications of such a breakup, based on J.P. Morgan's research. The note discusses scenarios for how the Euro area could break up, successor currencies, practicalities of replacing the euro, economic costs and benefits, contract settlements, currency movements, historical precedents, odds of various scenarios, and hedging strategies. It emphasizes the unprecedented nature of a currency union's demise and provides hedging recommendations given current FX volatility.
documents/EFTA01148564.pdf
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