http://www.bbc.co.uk/news/business-16981897
In class, professor Skosples mentioned how Greece's problem could be solved by an overnight conversion of currency. However, this article points out that it takes at least 4 months to develop a new currency system for the troubled country.
It also mentions that it's impossible to prevent information leakage if such plan is to be carried out. In that case, people will simply try to convert their monetary asset into another stable currency, thus leading to severe devaluation of the Euro.
In class, professor Skosples mentioned how Greece's problem could be solved by an overnight conversion of currency. However, this article points out that it takes at least 4 months to develop a new currency system for the troubled country.
It also mentions that it's impossible to prevent information leakage if such plan is to be carried out. In that case, people will simply try to convert their monetary asset into another stable currency, thus leading to severe devaluation of the Euro.
1 comment:
I would be interested to see how this process works out for Greece. Having a currency switch is a major transition and I think it would be very cool to see the effects that this has on the country. If it goes through I will keep my fingers crossed because I definitely would like to make a trip to Greece one day and I need that country to be in a good state!
Post a Comment