> On Jul 16, 2015, at 11:29 PM, Gar Lipow <[email protected]> wrote: > > Everyone on the Greek side who talks of a "friendly" or "orderly" exist from > the Euro comes around sooner or later to the idea of a peg during the > transition period - where for a fixed length of time the EU maintains an > exchange rate of .8 drachman per euro or whatever. Implicit in this kind of > peg is a limit on the number of drachma that can be issue during that period, > cause no one is going to grant a guaranteed peg for unlimited number of > drachma.
Either the limits on drachma production will have to be very severe, or the authorities would have to dump billions into supporting the new currency, because no one will want to hold drachmas for fear of their inevitable depreciation. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
