Re: [OPE] Class Analysis of the Greek Bailout

Those questions are reasonably easy to answer:
they should float the drachma, accept only drachma for export payments, and in consequence, buy imports with drachma at whatever the world market price of those. It means a strict restriction of imports -- more serious problem is block on technology imports and possible tariff barriers on their exports to the EU.
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From: ope-bounces@lists.csuchico.edu [ope-bounces@lists.csuchico.edu] On Behalf Of Dave Zachariah [dave.zachariah@gmail.com]
Sent: Sunday, May 23, 2010 8:41 PM
To: Outline on Political Economy mailing list
Subject: Re: [OPE] Class Analysis of the Greek Bailout

On 2010-05-21 15:06, Paul Cockshott wrote:
> The KKE proposal is one possible strategy, but it runs the danger of being based on national autarchy, which may be a perilous long term strategy for a relatively small country. But I can see faute de mieux they might propose it.
>

This is something I've been struggling to understand over some time: A
relatively small capitalist country facing massive challenges, whether
Iceland or Greece, could set off on a radically different economic path.
But how to cope with international trade and the existence in a world
capitalist system? Should it keep currencies floating as before? Would
it face credit problems for imports? In what ways could financial
markets alone but pressure on such a country?

//Dave Z
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Received on Sun May 23 16:34:15 2010