Drachmas Greece
What would had happened to Greece if it hadn’t had the euro as its currency (but had still used drachma)?
I mean, how much has the euro helped Greece avoid bankruptcy?
I also wanted to use this occasion to wish all the Greeks luck!
Think about a market where you can shop with all different currencies, what you’ll see a lot of exchange rate fluctuations. Eventually, businesses and people will get hampered from these fluctuations. So you need a market where a single currency can fluctuate and shoppers and the business owners can protect themselves from harsh exchange rate fluctuations.
The whole idea of introducing the Euro to the Union was that a single currency would cause prices everywhere and inflation rates across all member states would not be in much difference. It would narrow the economic differences between the member countries of the monetary union.
However, some countries in the Union like Greece when setting their economic policies acted as though they would be able to devalue their way out of an economic crisis. This strategy unfortunately haunt them back.
“how much has the euro helped Greece avoid bankruptcy?”
In my humble opinion not much. In crisis like this, if Greece still had drachma in use would only effect the countries which were in trade relations with Greece, right now scale of impact is greater because of having one single currency (the Euro) in the union.
Probably, Greece would have different economic policies if they kept drachma. However, even after the Euro’s introduction to Greece, they still kept the outstandig economic policies as mentioned above.
After the Euro became the common currency within the Union, started creating complications in ECB (I love calling it as “the union’s bank”) because it was hard to determine the appropriate interest rate for all members and it became hard to apply the same rate to very wealthy countries, such as Germany and the Netherlands, as same as not so rich countries, such as Greece and Portugal. Then best-performing and worst-performing euro-zone countries term came alive and the union’s bank decided on applying different rates.
I do share your wish towards Greeks and hopefully soon they will have better days!
Euro wobbles over fears of Greece ditching for drachma
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Modern Greek (Hellenic) Coins $20.00 Drachma (pl. drachmas or drachmae) is the name of:1. An ancient currency unit found in many Greek city states and successor states, and in many South-West Asian kingdoms of the Hellenistic era. 2. The modern Greek currencies. Ancient drachmaThe name drachma is derived from the verb “dratto” (to grasp). Initially a drachma was a fistful (a “grasp”) of six oboloi (metal sticks), which were used as a… |
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Ancient Athens on 5 Drachmas a Day (Traveling on 5) $10.00 A time-traveler’s guide to sightseeing, shopping, and survival in the city of gods and geniuses.Welcome to Athens in 431 BC! This entertaining guide provides all the information a tourist needs for a journey back in time to ancient Athens at its pinnacle of greatness more than 2000 years ago. Travel via Thermopylae, the Oracle at Delphi, and the site of the epic Battle of Marathon to the city of A… |
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The Legend of Alexander the Great on Greek and Roman Coins $33.29 This outstanding introductory survey collects, presents and examines, for the very first time, the portraits and representations of Alexander the Great on the ancient coins of the Greek and Roman period. From 320 BC to AD 400, Karsten Dahmen examines not only Alexander’s own coinage and the posthumous coinages of his successors, but also the re-use of his image by rulers from the Greek world and… |
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The Perachora drachma inscription (The Classical Review. [Offprint]) … |