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It'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 cu
by jljljl 13y ago
It'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.