There is a third solution in store for Greece, it could have two currencies in parallel that would stabilize the economy, Bernard Lietaer, co-designer of the European currency, told RT.
“Greece could be participant in the euro for tourism and shipping which are the largest sectors of the economy. At the same time it could have some new drachma which is playing by different rules and which is providing capacity to reanimate the economy at the grassroots level,” he said.
There have already been precedents of countries having two currencies, according to Lietaer....RT
100 percent in/out choice given to Greece is ‘false dilemma’ – euro architect to RT
See also
Interview with Bernard Lietaer
‘No reason why Greece could not have two currencies’ - a euro architect
1 comment:
I like Bernard, but he really need to change his approach.
All countries use multiple currencies and credit instruments already. It is the natural order of things. What he suggests already exists, and does in pretty much any open economy.
Of course what I find amusing is that having created a liability that can move anywhere across a continent there is a sudden desire to create parallel liabilities that don't.
It's quite clear in Greece that the state using the Euro is an ideological position that they wish to maintain. In which case they get to stand the consequences of that choice - no policy space to fix anything.
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