, KOΥΓΚΙ 2015: No, a parallel currency is not the answer to Greece's problems

ΓΙΑ ΜΙΑ ΚΥΡΙΑΡΧΗ ΧΩΡΑ

22 Μαΐου 2015

No, a parallel currency is not the answer to Greece's problems





by TOMAS HIRS

There is a theory running through financial circles that claims to offer Greece a get-out-of-jail-free card to its current problems and avoid the country being forced out of the single currency. The idea is fairly simple: Greece needs to launch a parallel currency alongside the euro so that it has the money to get its unemployed citizens back to work.

There's only one problem — it's bound to fail.

To understand why you need to look at what launching a parallel currency would actually mean in practice. Here's Wolfgang Münchau in the Financial Times today (emphasis added):
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