In a recent Bloomberg intereview, he said:
They should let Greece go bankrupt. It would be good for the euro. It would be good for Greece. It would be good for everybody. If Greece went bankrupt then everybody would say, boy, the euro is serious,it is going to be a sound currency and the euro would go straight up. It is not gonna happen that way, but that’s what should happen.On Marc 3, I wrote:
As long as the ECB does not print more euros to bailout Greece and any of the other PIIGS, the PIIGS crisis should have no impact on the euro. In fact, a Greek bankruptcy would be the best thing for the euro. It would show that the European monetary union is less subject to political pressures than individual sovereign states, for, most assuredly, the PIIGS, if they still managed their own moneys right now, would certainly be printing away right now.
Bob - you have been doing a great job on this greek story...
ReplyDeletebut I think Cato also made the same argument about the euro a while back
Lila
hmmmm, not an easy decision... to bail, or not to bail[out]. Greece is down the tubes, no question about that. But what about Spain, Portugal, Italy, the former Soviet states, and even Turkey? Letting one fail and then bailing [assisting] the rest leads to war, no matter how you dice it.
ReplyDeleteWhere is the argument? Why does a Greek bankruptcy has no impact on the Euro?
ReplyDelete