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Just out of curiosity, how would Greece having control of it's own currency reduce the real value of it's debt at this point? Considering 90%+ (to my knowledge
by woud420 12y ago
Just out of curiosity, how would Greece having control of it's own currency reduce the real value of it's debt at this point? Considering 90%+ (to my knowledge but I could be wrong) of it's debt is to foreign countries and currently in Euro, even if it left the Euro and returned to the Drachma, wouldn't printing more money just reduce the debt's real value to it's internal creditors (pensions)?
Wouldn't that also be against what the current government is trying to achieve?
- tomp 12y agoYes. My answer was assuming that Greece never took up Euro in the first place. In that case, it would probably issue debt in Drachmas (although not all countries do - e.g. Argentina issued it's debt in USD under NY jurisdiction, because having defaulted so many times, it couldn't sell bonds in Pesos under its own jurisdiction).