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> Printing your way out of crisis, only result in a sort of roller coaster economy That can happen in similar situations if you don't as well, though. Greece's
by _delirium 13y ago
> Printing your way out of crisis, only result in a sort of roller coaster economy
That can happen in similar situations if you don't as well, though. Greece's typical response to financial crises until recently was currency devaluation, i.e. massive but controlled step-function inflation. That certainly has a lot of downsides. But now that Greece is in the Eurozone, it can't do that. Even post-crisis, the inflation is very low; there is even deflation if you look at local baskets of goods. But that has not kept the economy off of the roller-coaster. It's just been a different roller coaster, and likely a worse one (in the previous crises, Greece never had 65% youth unemployment).