In this guest post, law professors Mark Weidemaier & Mitu Gulati evaluate the risk that euro area sovereign debt could be redenominated into new local currencies. The places to worry about are France and Italy, not Greece. Our work centers around questions related to sovereign debt, and lately we have heard from a number of industry friends who wanted to talk about redenomination risk for Euro area sovereigns.
You may consider the below as a series of questions that need answering in the face of recent hopes (that’s the right word, yeah?) for a return of inflation — that’s healthy inflation as opposed to stagflation or this being another false alarm, or dawn if we were to go for continuity, which we’re clearly not.