Peter1469
05-18-2012, 06:42 PM
http://www.dailymail.co.uk/debate/article-2145560/Merkels-real-fear-exit-Euro-good-Greece.html
Yes a Greece exit would be better for Greece than staying in the EZ, but it wouldn't make much difference for Greece other than the ability to monetize its debt.
Eurocrats are especially concerned that Greece might leave the euro – but not for the reason you might think. Their worry is not that Greece will sink into a state of Levantine poverty: that has already happened. No, their true fear is that, after a few wretched months, Greece would bounce back, using its newly competitive currency to price its way into the markets and export its way to growth.
If that were to happen, other countries on the periphery of the eurozone, also struggling with an over-valued exchange rate, might try something similar. The whole euro project would unravel faster than you could say ‘Jacques Delors’.
This is true. But it will only carry Greece so far. If Greece cannot control its spending, which we have seen no indication that it can, this advantage will only be sort-lived. I don't think that Greece can control its spending, or collect it taxes.
Yes a Greece exit would be better for Greece than staying in the EZ, but it wouldn't make much difference for Greece other than the ability to monetize its debt.
Eurocrats are especially concerned that Greece might leave the euro – but not for the reason you might think. Their worry is not that Greece will sink into a state of Levantine poverty: that has already happened. No, their true fear is that, after a few wretched months, Greece would bounce back, using its newly competitive currency to price its way into the markets and export its way to growth.
If that were to happen, other countries on the periphery of the eurozone, also struggling with an over-valued exchange rate, might try something similar. The whole euro project would unravel faster than you could say ‘Jacques Delors’.
This is true. But it will only carry Greece so far. If Greece cannot control its spending, which we have seen no indication that it can, this advantage will only be sort-lived. I don't think that Greece can control its spending, or collect it taxes.