|Source: Capital Economics|
Capital Economics: - A lower exchange rate would also prompt domestic residents to substitute away from foreign goods to cheaper domestically produced products. After the plunge in the krona in 2008, Icelandic import volumes fell by 45%, far sharper than the fall in domestic demand. In Argentina imports fell almost as sharply after the substantial devaluation in 2002. What’s more, a sharp devaluation may boost business sentiment and asset prices.
...once the dust settles and growth prospects in Europe begin to improve, markets are likely to rebound, particularly in those economies that exit the euro-zone. The euro could strengthen too.
This analysis obviously assumes stable global growth that helped Argentina recover quickly - which would not necessarily be the case going forward. But it does demonstrate that there maybe "life after the euro".