FXstreet.com (Barcelona) - A brief early evening note from Capital Economics considers the process of currency depreciation and wonders whether a return to the drachma would kick start the Greek economy.
They note that previous economies which have undergone this process have been experienced subsequent recoveries. Providing that Greece adopted a credible economic plan after any exit, they believe that “the subsequent devaluation would increase exports, encourage import substitution and, in time, boost domestic demand.”
They note that previous economies which have undergone this process have been experienced subsequent recoveries. Providing that Greece adopted a credible economic plan after any exit, they believe that “the subsequent devaluation would increase exports, encourage import substitution and, in time, boost domestic demand.”
