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Thursday, 02/23/2012 9:08:32 AM

Thursday, February 23, 2012 9:08:32 AM

Post# of 138
The German scenario "cohabitation" euro and the drachma
Read the alternative German economists Greek drachma economy and the euro.


Mika Kontoroussis
Posted: February 23 2012 14:24 Updated: February 23 2012 14:29
An original economic model proposed by German economists international reputation for the development of the Greek economy, but also to save the common European currency turmoil created by the states - members of the South.
"Not only Greece has been a crossroads unsustainable options such as imposing a painful austerity measures or leaving the euro. European entire South in danger of collapsing dominoes downside caused by the crisis of recent years", admit Mario Ohoven economists and Oliver Holtemöller.
In today's article in the German newspaper "Die Welt", the head of the German SMEs, Mario Ohoven and economist at the Institute for Economic Research Halle, Oliver Holtemöller argue that to not be faced with a "European shock", Greece must resort to a solution: The use of dual currency.


"To place that is both national transactions in euro, and in DR", add the economists.
In fact that, as analysts note, is not so difficult to achieve, as there is a huge need to "squared circle" that is to drastically reduce the deficit and at the same time, improve growth rates, but also increased the tax revenue.
How does a country with 2 coins?
Mario Ohoven The proposal provides that in regard to payment of salaries, pensions, even in rents, payments will be made to DR, while trade with the outside can be made in euros, as the tourism industry.
According to economists, the deposits of Greek citizens in Greek banks should be in euro, provided that they reported to the Finance Ministry and will have full control over State finances and savings of individuals.
Regarding the crucial question is the actual rate of two parallel currencies, economists suggest that "initially it could be stable for a transitional period of two months and then it is logical and expected according to market rules, the continued devaluation the drachma, but not more than 2% per month. "
In the story, analysts are sounding the alarm of a possible exit of Greece and the euro are carefully study all the scenarios before reaching there, stressing:
"A withdrawal of Greece from the family of the euro will not only have negative consequences for other eurozone economies, but would stop or at least significantly slowed the process of European integration."
The German economist Oliver Holtemöller even ends by saying that "leaving the euro would have dramatic consequences for the purchasing power of workers, the unemployed, and pensioners in Greek society."

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