2 ms·
If the ECB keeps the current regime for another 2 to 3 weeks, then Greece might be "forced" to go back to the Drachma and devalue. At that point you don't need
by atmosx 11y ago
If the ECB keeps the current regime for another 2 to 3 weeks, then Greece might be "forced" to go back to the Drachma and devalue. At that point you don't need to increase tax incomes but you might have a series of other problems (control devaluations, impose capital control for an undetermined period, etc.) - but in the long run, might be positive (According, to Krugman, Stiglitz, S. Keen, etc.)
- dkopi 11y agoInflating away debt is another form of increasing tax revenues. Also known as Seigniorage. It's just a more sophisticated way of collecting taxes, and it will harm the poorest greeks and middle class first.