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What i'm suggesting is that one solution to some of Greece's issues could have been solved through inflation. Arguably it would have been better received than
by swalsh 13y ago
What i'm suggesting is that one solution to some of Greece's issues could have been solved through inflation. Arguably it would have been better received than the measures actually took. However without the control, their options have been pretty limited.
- bayesianhorse 13y agoIt's a simple solution. But it didn't work in the majority of cases. This solution would also require Greece to go back to the economics of a developing country because they can't afford most imports, especially medicine or electronics.
- jljljl 13y agoIt's not just about inflating away debt, it's also about being more competitive vs. other European nations, like Germany. A reasonable devaluing of the Greek currency would have allowed more jobs and opportunities to shift towards Greece, reducing unemployment and probably growing per capita GDP. Greece has other structural problems, but the inability to adjust their currency has definitely hurt them.
- gamechangr 13y agothere is not a "one size fits all" economic plan.
- jljljl 13y agoOf course there isn't. No one is saying there is.
- bayesianhorse 13y agoYou'd have to have a reasonable expectation that the additional competitiveness is worth the cost in living standards. There is no strong evidence that their own currency would help them enough to offset the problems they face after exiting the Euro.