2 ms·
Read fractional-reserve banking. They only have a small fraction of deposits in the form of cash. Since the bulk of the Greek economy depends on imports, it mea
by cmurf 11y ago
Read fractional-reserve banking. They only have a small fraction of deposits in the form of cash. Since the bulk of the Greek economy depends on imports, it means they are constantly importing stuff and exporting cash.
And their dependency on actual physical paper money in the day to day economy has really hurt their economy more in the last two weeks than anything that's happened since the 2nd bailout; it may turn out this current period injures the Greek economy worse than any of the austerity measures.