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Possible new lira and drachma - prediction of massive devaluation
Perhaps always (however long that is) and their populations seem to be in favour, most likely knowing what would happen to a new Italian lira and a new Greek drachma - massive devaluation. I also believe in the Eurozone as a project that one can enter but not exit - leaving a monetary union is much, much more complicated than devaluation of a fixed exchange rate.
But although I am in favour of the Eurozone project - the predictability for financial markets, for employers and employees created by a credible "close-to-but-below-2%-inflation" is very useful for setting interest rates and wages and the single currency is ultra-convenient for exporters and importers of which we have very many - Italy and Greece should not be there, should never have joined and should consider leaving, however (extra) painful that may be.
