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Actually the greek populace is overwhelmingly in favor of keeping the Euro and they don't really buy into "Make your own currency, devaluate it like crazy and m
by bayesianhorse 13y ago
Actually the greek populace is overwhelmingly in favor of keeping the Euro and they don't really buy into "Make your own currency, devaluate it like crazy and maybe in a decade or to you will have the same wealth as now".
In Argentina this didn't work that well either.
- jljljl 13y agoSwitching currencies and devaluing causes a lot of pain and hardship, especially since capital quickly flees the country to avoid the devaluation. This usually necessitates capital controls, and leads to a lot of short term chaos. Greece would likely prefer to avoid this pain, stay in the Euro, and escape the crisis through fiscal stimulus paid for by the EU, similar to how the US Federal Government provides fiscal stimulus and transfer payments to State Governments.