mafketis
14 Feb 2018
Life / Poland safe for a Greek? [93]
Eternal depression? The problem is that currency unions usually have transfers built in where money is sent form richer to poorer parts (in the US from North to South, in the UK from South to North, in Poland West to East).
The Euro is a non-transfer currency union where poorer countries are obliged to take out loans which means that service economies like Spain or Greece have to become more productive than production economies like Germany in order to pay them back or they'll fall into eternal debt bondage with no hope of recovery.
The Euro works for production economies (Germany) or banking economies (Luxembourg) it cannot work for service economies in the long term without a central bank and transfers.
Is Greece closer to economic recovery now than it was 5 years ago?
Eternal depression? The problem is that currency unions usually have transfers built in where money is sent form richer to poorer parts (in the US from North to South, in the UK from South to North, in Poland West to East).
The Euro is a non-transfer currency union where poorer countries are obliged to take out loans which means that service economies like Spain or Greece have to become more productive than production economies like Germany in order to pay them back or they'll fall into eternal debt bondage with no hope of recovery.
The Euro works for production economies (Germany) or banking economies (Luxembourg) it cannot work for service economies in the long term without a central bank and transfers.
Is Greece closer to economic recovery now than it was 5 years ago?