Germany might consider exiting monetary union in coming years to protect price stability as the Greek crisis threatens to turn the euro area into a region of “fiscal profligacy,” Morgan Stanley said. Greek support measures “set a bad precedent for other euro area member states and make it more likely that the euro area degenerates into a zone of fiscal profligacy, currency weakness and higher inflationary pressures over time,” said Joachim Fels, co-chief global economist at Morgan Stanley in London, in an April 14 note. “If so, countries with a high preference for price stability, such as Germany, might conclude that ... (full story)