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The inability of the Greek government to print their own money to try and counter deflation (I read it was something like between 2% and 3% year over year for t
by stock_toaster 11y ago
The inability of the Greek government to print their own money to try and counter deflation (I read it was something like between 2% and 3% year over year for the last two years) is also pretty rough. Not only due to probably further contracting GDP, but also by making loans more expensive!
- akg_67 11y agoThis is the main problem. Greece can't get out of the problem without printing money, devaluing currency, that result in cheaper export and increasing revenue through increased export and getting out of the trouble. Euro experiment is showing that Monetary union without Fiscal union doesn't work. How do you reconcile Germany's need to keep Euro strong and Greece's need to make Euro weaker? Some sort of transfer payments need to be made from Germany and other economically stronger countries to countries in weaker situations such as Greece or this monetary union without fiscal union experiment is going to fail.
- keithpeter 11y agoAnd Germany has not seen its exports rise in cost over the last decade or so as they would have done if the Deutsche Mark still existed. Currency union cuts both ways. UK: after the experience of Black Monday and the European Exchange Rate Mechanism, many people here were wary of joining the Euro.