Quote:
Originally Posted by Arragonis
If you set countries like Greece free to have their own currency then they can devalue and they can compete on price with the rest of us...
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Got to admit I don't really understand most of that. (Guess I should've stuck to quantum mechanics :-)) Devaluing as a way of escaping debt seems just a sneaky way to declare bankruptcy without actually calling it that: "Yeah, we're just going to pay ten cents on the dollar of what we owe you, but you're going to get just as many of our shiny new devalued pesos, so it's ok."
As for devaluation letting them compete on price, wouldn't any sensible person just raise the price as measured in new, devalued money so as to receive the same value?