> On Feb 27, 2015, at 3:10 PM, McDonough, Terrence > <[email protected]> wrote: > > > Doug Henwood writes: > > A return to the drachma or the creation of some sort of domestic parallel > currency would create a class-tiered system, with elites still using the euro > (even if parked abroad) and the masses stuck with a depreciating unit. What > modest savings they have would be destroyed. This seems like political > disaster aside from economic. > > I'm no monetary economist, but it seems to me much that is written doesn't > take into account the fact that the Euro will remain an ongoing currency > after any Greek exit. Why change Euro savings accounts to drachmas? The > rationale would be to prevent people from holding assets outside the national > currency which would tend to weaken it. This is Veroufakis's fear in > relation to any new drachmah. It is already too late to stop this. Let the > Euro continue to circulate. Instead of the drachma issue bonds in small Euro > denominations redeemable in payment of tax. These would be somewhat less > valuable than the Euro face value but would retain value better than a new > drachma.
You're referring to so-called tax anticipation notes which are discussed extensively in relation to Greece here: http://www.nakedcapitalism.com/2015/02/robert-parenteau-get-tan-yanis-timely-alternative-financing-instrument-greece.html _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
