Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
This is what happens when you're not an autonomous currency issuer. Those who want a gold standard don't even understand why Greece is in economic turmoil.
Quote:
ATHENS, Greece -- Unemployment in Greece rose to a new record high of 27.6 percent in May, leaving almost two thirds of young people without a job, the Hellenic Statistics Authority said Thursday.
The jobless rate rose from 27 percent in April and 23.8 percent in May last year. Young people were by far the worst affected, with unemployment among job-seekers aged 15 to 24 standing at 64.9 percent.
Greece has been depending on funds from international rescue loans since May 2010, after years of profligate spending and fiscal mismanagement left it with a massive budget deficit.
In return, successive governments have imposed stringent austerity measures, including tax hikes and salary and pension cuts that have caused the economy to contract. The country is currently in the sixth year of a deep recession.
I am not sure I understand what you mean. If you mean to say that the Euro is a problem for Greece, yes, it is. But the currency is by far not Greece's only problem, far from it.
greece isn't literally being bound to a gold standard, but i see what you're saying.
Quote:
Originally Posted by Neuling
I am not sure I understand what you mean. If you mean to say that the Euro is a problem for Greece, yes, it is. But the currency is by far not Greece's only problem, far from it.
Obviously currency isn't Greece's only problem, but it is the reason Greece is having to make difficult decisions right now.
The point the OP is trying to make is that when you're not in control of your own currency, it makes it harder to manage your economy. A gold standard basically are a pair of handcuffs
Greece's main problems are corruption, lack of competitive modern industries, existing debt and thus interest, excessive military spending, the Greek language, etc.
The point the OP is trying to make is that when you're not in control of your own currency, it makes it harder to manage your economy. A gold standard basically are a pair of handcuffs
Tying a currency to a fixed asset is not the same thing as tying it to the good faith of a collection of countries as a whole. Over 30% of greece's economy is underground at the moment, and they have less success in tax collection than any other country in europe. Monetary policy isn't greece's main problem.
Greece's main problems are corruption, lack of competitive industries, existing debt and thus interest, excessive military spending, the Greek language, etc.
All of this could be alleviated with a sovereign currency.
Tying a currency to a fixed asset is not the same thing as tying it to the good faith of a collection of countries as a whole. Over 30% of greece's economy is underground at the moment, and they have less success in tax collection than any other country in europe. Monetary policy isn't greece's main problem.
All of this could be alleviated with a sovereign currency.
I agree that a sovereign currency gives the government more power and freedom to decide on things.
But even with a sovereign currency Greece's problems would remain. Not least because politicians won't come up with great politics all of a sudden just because there is a sovereign currency.
For instance the Greeks have a huge morals problem, lots of people are cheating and lying to keep or get stuff they are not entitled to.
To a lesser extent that is also a problem here in Portugal. While I am very much in favor of leaving the Euro behind, I doubt that would really give us better politics.
The point the OP is trying to make is that when you're not in control of your own currency, it makes it harder to manage your economy. A gold standard basically are a pair of handcuffs
Yes, you're handcuffed.
Handcuffed from manipulating money to allow you to overspend without consequences. You can still manage your economy when you're on a gold standard. You just have to work within your means instead of beyond your means.
But this is typical liberal thinking to see working within your means as handcuffs.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
