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Another possible step:

Appearing on Tonight with Vincent Brown on April 18 Steve Keen endorsed a proposal in Ireland that would have the Irish Government issue new Punts pegged to the value of the Euro, but restricted to Irish domestic use only. They would buy euros from the Irish public and use those to pay Euro-denominated debt to the Troika, while allowing the Punts to circulate domestically.  Steve described the process as saying: "Here is your damaged currency." The debt would be paid without reducing the value of the currency in circulation domestically. Exporters could still sell in Euros internationally. IIRCC this proposal is about ten minutes into the program, which is very interesting.

While Ireland has a primary surplus and Greece does not, performing a similar maneuver with a New Drachma for domestic use only and pegged to the Euro, could at laest prevent a collapse of the domestic money supply. But the primary deficit Greece runs could provide complications. At least they could provide an adequate money supply for all domestic transactions in a currency under the control of the state.  

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue May 1st, 2012 at 02:52:11 PM EST
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