: Isn’t history full of countries that have devalued their way out of crisis by generating an export boom Didn’t Argentina recover that way when it abandoned its currency peg to the US dollar in 2002 Taken to its logical extreme, this argument says the real threat to the survival of the eurozone is that Greece leaves and prospers, according to The Guardian. Come the next crisis, other strugglers might opt to quit, dumping their debts as they go. Sure, the immediate economic pain would be severe, but a new drachma, coupled with debt default, might deliver a whoosh of relief in time. If this idea sounds far-fetched, Jim Leaviss on M&G bond team would agree. Sure, there are parallels between the causes and symptoms of distress – an overvalued currency, unsustainable debts, shoddy tax collection, dodgy official statistics and high unemployment. He makes an excellent case that Greece isn’t Argentina, not by any stretch.
(news.financializer.com). As
reported in the news.
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