honorarium

A very clever young man from the Netherlands, named Jurre Herman, offered a very elegant solution to help staunch the currency-crisis in the euro zone, which I think deserves more than an honourable mention in the open contest economic contest calling for submissions from all sources. Herman suggests that the Greeks, and probably with wider applicability, revert to using the drachma for day-to-day, internal affairs, buying drachmas from the government at an equitable rate with their euros. The government then can use the euro to pay down the debt. The value of the drachma of course drops precipitously but that again can make industry and the labour force more competitive. For those hording euro or stowing it away overseas, there would be a punitive exchange rate applied. And for those doing business internationally, they would be able to sell their drachma back for euro, at a rate slightly favourable to the government. With some tweaking, I think such a plan might work and perhaps economists and analysts are not the one to dictate what is and is not feasible.