QuoteOriginally posted by: trackstarI was about to ask a similar question, but I would put it this way:Never mind exactly how it would work, but if EU countries were given a chance to opt out of the euro and/or opt out of the Union completely, which would do so?Well, some people used to say that joining the Euro was like locking yourself into a common European house and throwing away the key. I think they were kind of right, it would be extremely difficult to leave the Euro - at least if the market was aware of your intentions. To implement a policy, no to mention printing and circulating new currency, takes time. Would you keep your deposit in a Greek bank if they announced that they were leaving the euro, which would be equivalent to a large devaluation?Anyway, what would be best for Greece (and the eurozone) is IMO a default, while still being part of the eurozone. After the default short term loans should be possible (not common with *two* defaults in a short time), and they could then move back to the drachma. Hopefully this would stimulate the Greek economy. Countries with free floating currencies often adjust more quickly to changed circumstances.To make things really interesting they could avoid printing the old-new currency all together, and supply the population with cards holding electronic money! Then the new drachma would only exist in electronic form.
Last edited by Powerpuff
on July 20th, 2011, 10:00 pm, edited 1 time in total.