Who picks up the tab? The German. Since we’ve started talking about currencies and the forex market, I feel it would be apt to start off with a joke and then mention the Euro dilemma. More specifically, the problem with regards to Greece dumping the Euro in order to return to the Drachma. The issue here is how would this affect Europe as a whole? This Cnnmoney article states how if Greece dropped the Euro, virtual chaos would ensue including: the printing of currency at a rapid rate, the decrease in bank savings, the issue with translating foreign loans into alternate currencies, and most importantly the resulting domino-effect of other nations leaving the Euro (like Germany and France), thus radically damaging the currency. On the other hand, this NPR article mentions how Greece should leave, resulting in a immense hit economically, but a faster recovery would ensue than if it stayed within the Eurozone and maintained its current austerity measures. The million-dollar question is what should they do? And how would the consequences of that action reverberate worldwide?
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