On Jul 21, 2015, at 8:32 AM, Louis Proyect <[email protected]> wrote: > (When I stated that Schauble was "veering to the left" by supporting > Grexit, I was busting chops. In this article Dean Baker takes his > proposal seriously, making it sound like the sort of thing you would > hear from Alex Callinicos or Michael Roberts.) > > There are two major benefits from the Schäuble plan. First, it would put > Greece in a position to restructure its debt. While there would be many > battles with creditors over the extent and conditions of any > write-downs, the immediate outcome would be to free Greece from the > obligation to run large primary budget surpluses to pay interest on its > debt. This could provide a substantial boost to its economy as money > that would be flowing out of the country for debt service could instead > be used for domestic purposes like sustaining infrastructure and paying > for health care and pensions. > > The other major benefit would be that a lower valued currency would make > Greek goods and services more competitive internationally. This should > provide a substantial boost to its net exports, which would lead to > growth and jobs.
Poor Schauble. Even if is sincerely looking for a way out to end the cycle of bailouts and to provide some debt relief to Greece without setting a dangerous precedent within the eurozone, neither he nor the eurozone technocrats understand the intractable coding problems of converting to a new currency, do they? _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
