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In theory, with a new drachma and its own central bank, Greece could devalue and gain competitiveness. But Greece’s trade is modest Greece is the most enticing

In theory, with a new drachma and its own central bank, Greece could devalue and gain competitiveness. But Greece’s trade is modest Greece is the most enticing tourist destination in the world. It has everything .. history, culture, beaches, food etc. A devalued Drachma would draw an increasing portion of an industry that is poised for dramatic growth as more Indians & Chinese become rich enough to catch the tourist bug. It's world-class shipping industry would also become more competitive against Korea, Scandinavia and Japan. Syriza is not as "far left" as portrayed, and they are not as corrupt as previous Greek governments. Their finance minister, though he has described himself as a "libertarian marxist", has received strong praise from free-market institutions for various proposals. https://en.wikipedia.org/wiki/Yanis_Varoufakis https://en.wikipedia.org/wiki/Yanis_Varoufakis The big problem for establishment magazines like the Economist has become, is that he dares to think for himself.

elmar 11y ago
libertarian marxist https://en.wikipedia.org/wiki/Libertarian_Marxism https://en.wikipedia.org/wiki/Libertarian_Marxism
derriz 11y ago
Unfortunately tourist infrastructure determines how much tourism can grow and Greece already has 70-80% hotel bed occupancy so I don't see the scope here to prove a huge economic boost. On the other hand, Greece imports energy, food, medicine and technology and those things will all have to be paid for with hard cash. The result of a 50% devaluation of the new Drachma will be a doubling in prices for basic life necessities. It's clear to me that Syriza's policies have been and will be absolutely disastrous for the ordinary Greek person. Things may have been bad last year but at least there was a small uptick in GDP and employment and seemingly a small improvement in government finances. With a busted bank system, capital controls and no cash to pay for essential imports, I can see Syriza turning Greece into a fully failed state.
- argumentum 11y ago
  Why couldn't you build more hotel capacity? Anyway, airbnb should accommodate more and more visitors as well. Some of those things, particularly medicine & food, are artificially high priced because you are in the EU: http://www.firstwordpharma.com/node/1065529#axzz3ePfuiLQG http://www.firstwordpharma.com/node/1065529#axzz3ePfuiLQG I grant it will be difficult for a year or two, but I predict you will be better off in the long run.

elmar 11y ago

libertarian marxist https://en.wikipedia.org/wiki/Libertarian_Marxism https://en.wikipedia.org/wiki/Libertarian_Marxism

derriz 11y ago

Unfortunately tourist infrastructure determines how much tourism can grow and Greece already has 70-80% hotel bed occupancy so I don't see the scope here to prove a huge economic boost. On the other hand, Greece imports energy, food, medicine and technology and those things will all have to be paid for with hard cash. The result of a 50% devaluation of the new Drachma will be a doubling in prices for basic life necessities. It's clear to me that Syriza's policies have been and will be absolutely disastrous for the ordinary Greek person. Things may have been bad last year but at least there was a small uptick in GDP and employment and seemingly a small improvement in government finances. With a busted bank system, capital controls and no cash to pay for essential imports, I can see Syriza turning Greece into a fully failed state.

argumentum 11y ago
Why couldn't you build more hotel capacity? Anyway, airbnb should accommodate more and more visitors as well. Some of those things, particularly medicine & food, are artificially high priced because you are in the EU: http://www.firstwordpharma.com/node/1065529#axzz3ePfuiLQG http://www.firstwordpharma.com/node/1065529#axzz3ePfuiLQG I grant it will be difficult for a year or two, but I predict you will be better off in the long run.