Re: [OPE] Class Analysis of the Greek Bailout

On 2010-05-23 22:30, Paul Cockshott wrote:
> 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.
>

One problem could be that since the productive base of the Greek economy
seems so weak, shifting from imports to domestic production would take
relatively long time and lead to significantly lower living standards as
more labour is required to meet the real wage.

//Dave Z
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Received on Mon May 24 15:00:02 2010