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I always wondered what would happen if a country using the Euro right now decided to back out and go back to its own currency. Wouldn't exactly the same thing
by AnotherGoodName 6y ago
I always wondered what would happen if a country using the Euro right now decided to back out and go back to its own currency.
Wouldn't exactly the same thing as the above proposal occur?
ie. Everyone in the country is suddenly paid the new currency, exclusive usage is mandated so by law and taxes require payment in the new currency. There would be fewer Euros needed for internal Fiat so those Euros could be invested and thus the switch should make everyone in those nations that little bit richer right?
- RobertoG 6y agoIt would depend on how is done. Here there is a video with a good explanation by Warren Mosler. It mentions the appreciation effect that you comment about: https://www.youtube.com/watch?v=V2iBD1x5ofw https://www.youtube.com/watch?v=V2iBD1x5ofw