Re:'Single currency experiment has been a disaster' admits e...
by tonyedgecombe on Saturday August 27, 2016 @02:00PM
(#12373405)
It's interesting that despite it's economic difficulties Greece doesn't seem want to leave the Euro.
Re:'Single currency experiment has been a disaster' admits e...
by tim333 on Saturday August 27, 2016 @04:05PM
(#12373929)
Greece leaving would be problematic as Greece owes a lot of euros. If they leave, Greeks earning devalued drachmas would probably default, causing the German banks they owe money to to fail and generally causing a lot of issues. I think they'd quite like to if it wasn't for such problems.
Re:'Single currency experiment has been a disaster' admits e...
by tonyedgecombe on Saturday August 27, 2016 @04:46PM
(#12374091)
I can't imagine the Greeks are too worried about what happens with the German banks, it seems far more likely they just don't trust their own government to run a fiscally sound monetary policy.
Re:'Single currency experiment has been a disaster' admits e...
by toyg on Saturday August 27, 2016 @05:27PM
(#12374261)
For southern countries, there is also an aspirational element. Knowing you are guaranteed the same rights and privileges as people living in Paris, Berlin or Stockholm is a powerful motivator -- if anything because you know that, should things become completely unsalvageable back home, you can always up sticks and leave to better-run countries.
If you are looking at it from a Brexit perspective, consider that shedding skeptic countries that never joined the Euro is a good thing in a federalist sense, since it makes it easier to achieve consensus in a smaller and more committed group.
In a way, losing Greece or Italy would have proven Friedman right, but the opposite happened: the Euro survived, Greece and Italy now are forced to drive their economy from a European perspective. De-facto political unity is happening, country by country.