Many point to Argentina to argue their case for the drachma."..Argentina’s case when it broke its peg with the dollar in 2002, the export boom ignited by a cheaper currency and the ability to control the drachma would eventually work in Greece’s favor."
Wednesday, November 2, 2011
Back to the Drachma?
With Greeks many financial troubles with the euro, many are beginning to wonder the future that it has in the Greek economy. The idea is that after the initial default, the long run with the drachma would look much brighter. One key idea brought up in the article is that if Greece once again has its own currency, it would have the ability to print money. Upon the switch, would the onset of "apocalyptic" panic prove too much for the Greek economy, and society as a whole?
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Well, even though economists are divided it seems like returning to the drachma would be a wise, if unlikely, path for Greece to take. Increased competitiveness due to increased exports and imports, in addition to Greece being able to control its own monetary policy could help their economy greatly. The problem here is public opinion. It seems like convincing the Greek public that going back to the drachma is anything other than going in the wrong direction will be a difficult task.
ReplyDeleteMore evidence Greeks are living in the Land of Daffodils and Lollipops. The main reason Greece is in such a bad situation is that they don't want to pay taxes, but want all the great socialist benefits; they believe in the magical "someone else" who will pay for it all.
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