10 Lessons from Cyprus

Here are the likely lessons future historians will draw from Cyprus’s sorry experience in the euro. By Desmond Lachman By destroying Cyprus’s bank-centric business model and by imposing severe austerity on the country  within a euro straitjacket, the International Monetary Fund–European Union bailout package for Cyprus is  likely to lead to the literal collapse of the Cypriot economy over the next year and to Cyprus’s exit from the euro.  Such a course of events will have important ramifications for the rest of the European Monetary Union. When  the dust settles and future historians seek to draw lessons from Cyprus’s sorry experience in the euro, they will likely draw the following conclusions.  Lessons for Cyprus Read more http://www.american.com/archive/2013/april/10-lessons-from-cyprus