Tuesday, August 7, 2012

My idea for fixing Greece

Greece should introduce a new currency to be known as the "Gyro" (Greek Euro).  Any Euro notes with a serial number beginning with "Y" (the Euro country code for Greece), would be part of the currency.  In addition, the National Bank of Greece (NBG), would print its own currency, initially in denominations of 100 Gyros only.

To help maintain the value, the 100 Gyro notes would have an interest rate, say 12%.  After one year, they would be redeemable for new Gyro notes plus the interest.

There would be a planned devaluation, announced in advance, of 1% per month against the Euro, until the value is 50% of the Euro, at which time the policy would be reassessed.

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