The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Current account deficits? Less certain, but still not entirely unlikely.
Friends come and go. Enemies accumulate.
Then the deficit chickenhawks would have to either back down or move for expulsion. And the chickenhawks have a blocking minority, but they don't have a qualified majority.
Doesn't matter, though, they still won't have a working majority.
If the threat of expulsion from the relevant communities is not sufficient (and if the local population accepts the Greenbacks as payment for services rendered), the only way to stop them is sending in the gunboats.
But of course, if they are forcibly ejected from the -zone, they would have no particular reason to issue Greenbacks instead of just printing their own money.
But they can't print -notes or mint -coins without permission from the Bundesbank.
Well, actually they can, but the official EU stance would be that they were counterfeiting.
So, a default would free up about 30% of GDP in government expenses. Though, in terms of reducing deficit, only the interest payments would count.
So I'm not sure Greece couldn't make do just with the tax revenue. Plus, they could issue some sort of IOUs redeemable in payment of state taxes as a form of currency.
By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan
by Luis de Sousa - Nov 22 14 comments
by Frank Schnittger - Nov 19 48 comments
by Oui - Nov 20 8 comments
by gmoke - Nov 21 4 comments
by Frank Schnittger - Nov 7 89 comments
by Frank Schnittger - Oct 25 20 comments
by Cat - Nov 3 20 comments
by gmoke - Oct 31 5 comments
by Luis de Sousa - Nov 2214 comments
by gmoke - Nov 214 comments
by Oui - Nov 208 comments
by Frank Schnittger - Nov 1948 comments
by Oui - Nov 161 comment
by Oui - Nov 162 comments
by Oui - Nov 89 comments
by Frank Schnittger - Nov 789 comments
by gmoke - Nov 6
by Cat - Nov 320 comments
by gmoke - Oct 315 comments
by Frank Schnittger - Oct 2817 comments
by Frank Schnittger - Oct 2520 comments
by Cat - Oct 2127 comments