Monday, January 16, 2012
Solution to the Euro crisis? Keep the Euro, and introduce the drachma, lire etc.
The creation of parallel European currencies is the only credible solution to the problems of the eurozone
An idea that keeps popping up without getting the attention it deserves... Proposes that instead of leaving the Euro, the countries with exploding debts and junk bond status re-issue their own currencies and run them parallel to the Euro. Despite this coming from a conservative, and the vomitable name of the blog, I think this is a sound idea ;-) Debts would remain euro denominated or would be defaulted in a more orderly fashion. I would add that so long as the new currencies are acceptable to national governments as payment of taxes, there should be no problem with their acceptability as a unit of account and medium of exchange. Why should someone not accept them if you can pay your taxes with them?