Ignoring of course the "politics", or rather geo-politics, of such a decision.
Getting to the same point by cutting nominal wages would take much longer and inflict much more human and economic damage.
And he comes back with a new post dealing with the matter of the debt. He asks, answering the question: Wouldn't an exit make that debt unsupportable, and force default?"
Getting to the same point by cutting nominal wages would take much longer and inflict much more human and economic damage.
Otherwise, we’re talking about Greek-level austerity or worse in an economy whose fundamentals, thanks to the implosion of offshore banking, are much worse than Greece’s ever were.
And he comes back with a new post dealing with the matter of the debt. He asks, answering the question: Wouldn't an exit make that debt unsupportable, and force default?"
" ...what makes you think that Cyprus can avoid default even if it stays on the euro? "
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