Should Greece go back to the Drachma?
Greece's debt is in foreign currencies, if Greece devalues with a devaluing currency their debt will increase compared to the Drachma and could lead to a death spiral in debt repayments.
Greece can already devalue by taking lower salaries. In a future post I will be looking into some of the mistakes the IMF made in policy advice to Greece and how they can learn from their mistakes for future policies.
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