The Italy factor gets ugly
The Italy factor gets ugly
- November 10, 2011
- Research by Stergios Skaperdas, economics professor, is featured in Seeking Alpha November 10, 2011
From Seeking Alpha:
Perhaps there'll be fewer members. Surely the rules for membership will change. Figuring
out what it means to be a euro member is headed for a dramatic attitude adjustment.
Meantime, it's a sign of the times when economists are offering detailed tips for
exiting the euro. Stergios Skaperdas, an economics professor at University of California,
Irvine, outlines a roadmap for Greece's departure, assuming it comes to that, which
is no longer beyond the pale: To minimize the number of days banks would need to be
closed, the decision to move to the new drachma should be made on a Friday. Bank deposits
and domestic debt would be immediately converted to new drachmas at the initial exchange
rate. It would fall to the Greek courts to determine whether pre-2010 public debt
would follow suit, but there is no reason to think they would treat it any differently
from domestic debt.
For the full story, please visit http://seekingalpha.com/article/306943-the-italy-factor-gets-ugly.
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