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I for one, am baffled by peoples faith in currencies. If we are to believe polular discourse, the adoptation of the euro was the primary cause of Greece's troub
by stygianguest 15y ago
I for one, am baffled by peoples faith in currencies. If we are to believe polular discourse, the adoptation of the euro was the primary cause of Greece's troubles and reversion to the drachme as the inevitable solution. Funny how Iceland managed to screw up without the euro and are now considering joining it.
Now that I think of it, has a country ever managed to deliberately introduce a weaker currency to save the economy? I can only think of examples leading to hyper inflation.
- rudiger 15y agoBy definition, introducing a weaker currency (or printing more of the same) will lead to inflation. However, it might be necessary to endure a period of hyperinflation for the economy to recover.