Greece: Why Not Go Back to the Drachma?

kristy Reforming Global Finance

An article from The Globalist

Greece: Why Not Go Back to the Drachma?

By Thanos Skouras | Tuesday, February 07, 2012

In the international debate about Greece’s future options, it is often argued that the only way out for Greece is to abandon the euro and return to its national currency. As Thanos Skouras points out, that strategy would likely be a great deal for Greece’s highly indebted political parties — and a terrible deal for Greek democracy.

There are three problems with Greece abandoning the euro and returning to the drachma. The first two pertain to the sphere of macroeconomics. Most immediately, there would be turmoil and difficulties involved in the transition from the euro to the drachma.

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