Dutch Boy Attempts to Save the Eurozone

[Conley]

An 11-year-old boy's plan to save the eurozone has been commended in a major competition that has attracted some of the world's top economists.

Schoolboy Jurre Hermans from the Netherlands gets a special mention - and a 100-euro gift voucher.

He suggests how Greeks could swap euros for their old currency, the drachma.

Five entries were shortlisted for the Wolfson Economics Prize in the competition to find the best plan for dealing with a eurozone break-up.

The prize sought to find the best answer to the following question: "If member states leave the Economic and Monetary Union, what is the best way for the economic process to be managed to provide the soundest foundation for the future growth and prosperity of the current membership?"

Lord Wolfson, whose family charity is putting up the prize money, told the BBC there was a serious need for a solution to any euro break-up.

"What we are looking for is a way that if the eurozone collapses, contracts [then] people's debts, mortgages can be managed to cause the minimum amount of pain when the structure collapses and to leave Europe in the best possible position to return to prosperity."

http://www.bbc.co.uk/news/business-17598550

There are some interesting ideas on how to save the eurozone among the finalists in addition to the boy's idea.

[MMC]

:laugh: grrrrrr......I thought like Dutch Boy Paints was moving over to Europe or something. :rollseyes: :grin:

[Peter1469]

The boy is correct. Greece should leave the Eurozone and go back to the drachma. I said that over 2 years ago. That would allow them to print more money, cause inflation, and pay off existing debt with drachmas worth much less than the original debt. It would also make Greece a very cheap place to vacation. :smiley:

[Conley]

It seems like tourism is one of Greece's main sources of revenue also.

[Peter1469]

Absolutely.

[Chris]

Returning euros might be a good idea but the boy's view of economics is typical of liberal's immature view: "Returned euros would form what he described as a giant pizza of money, slices of which would be handed back to creditors." Only difference he thinks of pizza while others think of pie. His idea is merely another redistribution of a fixed amount of wealth.

Peter, inflation would give Greeks less purchasing power. It's the same as our government's inflation efforts, might help the government, but not the people.

My solution would be simple: Abandon the EU. That wouldn't win a prize though. :-)