A way out for Syriza? Parallel currencies

A very interesting debate is evolving on whether a parallel currency for Greece could be an interim way out of the government’s liquidity problem. I have addressed this before when exploring the notion of default without Grexit (see here). This would allow external payments in Euros to continue, while avoiding internal default. This will be of course politically explosive, despite Varoufakis bitcoin related April’s fool jokes, but could yet offer some solution.

Click here for an introduction to the issue and here for commentary. See here for the role of the ECB in creating this liquidity squeeze.



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