DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - EU strips Greece of voting power, blow to sovereignty

**Raj_Copi_Jin** · 02-19-2010, 01:51 PM

untill now, Euro worked well and it's stronger than $ or pound.

That's precisely the problem for Portugal, Ireland, Italy, Greece and Spain.

If they had their own currencies they could devaluate their currencies and stop the crisis some months later, but they don't so adjustment will be done the hard way (with internal deflation, high unemployment and very low or negative growth).

Krugman explains the problem very well, much better than I could:

http://www.nytimes.com/2010/02/15/op...rssnyt&emc=rss

02-19-2010, 01:51 PM	#14
Raj_Copi_Jin Join Date Oct 2005 Age 48 Posts 4,533 Senior Member	untill now, Euro worked well and it's stronger than $ or pound. That's precisely the problem for Portugal, Ireland, Italy, Greece and Spain. If they had their own currencies they could devaluate their currencies and stop the crisis some months later, but they don't so adjustment will be done the hard way (with internal deflation, high unemployment and very low or negative growth). Krugman explains the problem very well, much better than I could: http://www.nytimes.com/2010/02/15/op...rssnyt&emc=rss
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