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The article could be more informative: "If it left the euro zone, Greece could reap the substantial benefits of a currency depreciation, but doing so would als
by nodata 15y ago
The article could be more informative:
"If it left the euro zone, Greece could reap the substantial benefits of a currency depreciation, but doing so would also set off huge runs on banks. And the country has no alternative paper currency ready for use."
This is the only part of the article that considers not repaying debts.
- JulianMorrison 15y agoA run on the banks, or a surprise lock-out followed by exit and devaluation = poor now. Decades of austerity measures = poor for the rest of your life. I know which sounds more sensible to me.
- quanticle 15y agoIts a false choice. Both options lead to poverty, because neither option deals with the fundamental problem: the Greek government doesn't make enough money to cover its yearly expenses without borrowing. Either we can have an orderly devaluation, or we can have a disorderly devaluation. Austerity measures allow for the first. A hasty exit from the Euro makes the second inevitable. Now which option looks more appealing?