26/06/2011 1:39:08 pm
A National Currentcy "Ruinous" For Greece. Some blame the euro for Greece′s problems and some argue that they should re-introduce the drachma. This option would have been - and would be - a disaster for Greece, according to The Economist:

"Even if capital controls were brought in, some Greek banks would go bust. The new drachma would plummet, making Greece′s debt burden even more onerous. Inflation would take off as import prices shot up and Greece had to print money to finance its deficit. The benefit from a weaker currency would be small: Greece′s exports make up a small slice of GDP. The country would still need external finance, but who would lend to it?"

They go on to argue that the current situation is unsustainable, and that there are hard choices to be made.

Read the entire artcle here - >