Why Greece Would Have a Tough Time With a New Currency

With excessive sovereign debt and bailout problems, Greece may have to switch to a new drachma and endure financial turmoil at home and in the eurozone.

The Eurozone: A “Cypriout?”

First people were concerned about a Grexit and now it’s the Cypriout. A German euro, a Greek euro, indeed all euros are supposed to be the same money. Traveling across the eurozone, in any of the 17 countries with the…

A New Greek (Economic) Fuel: Olive Oil

The Greek government needs its newest bailout infusion. But in return, austerity would include (among many other requirements) cutting certain civil servants’ salaries by as much as 35%, raising the retirement age again but this time to 67, and plunging the…

A Euro Zone Olympic team?

Sharing a larger and more varied pool of European talent was supposed to create an economic synergy. Starting with the European Coal and Steel Community in 1951, the first step was free trade. Nations were added, trade barriers disappeared, and…

Greek Banks and the “Perfect Financial Storm”

Like New York’s Knickerbocker Bank in 1907 or Jimmy Stewart’s 1930s bank in It’s a Wonderful Life, the ingredients of a classic run include distraught depositors and rumors of a bank’s imminent demise. Lines are long, emotions are volatile and,…

A New Drachma?

According to a 2002 BBC report, Greece was the least prepared to make the switch to the euro in 2002. During the transition only 1/6 of all businesses in Greece had received their euros. Now, Greece remains a dysfunctional euro…

Euro Notes

$1 million in $100 bills weighs 22 pounds. In $500 bills, $1 million would weigh 4.4 pounds. But the U.S. does not circulate $500 bills. The EU does. According to the WSJ and NPR’s Planet Money, people engaging in illegal activities…

Euro Matters

Said to have been one of the least-prepared countries to transition to euro cash, Greece was an original participant in the euro launch on January 1, 2002.  In the first major euro robbery, in Athens, a gunman ran off with 76,000 euros ($68,400).  During…