Richard Parker, American economic professor and adviser to former PM George Papandreou, told SKY NEWS, that the Greek government had seriously considered the possibility to exit the euro zone but such option was ruled out for economic grounds. Parker is an economic professor at Harvard University, he advised Papandreou in 2010-2011. Papandreou is been registered in the Greek history as the prime minister who took the country to IMF in May 2010 nd did not negotiate about the loan agreement.
While many economists say the country’s only reliable option to return to prosperity is to leave the single currency, Prof Parker said the benefits of such a move may be overstated.
In theory, leaving the euro would enable Greece to devalue its new currency, making its exports more attractive to overseas buyers.
However, Prof Parker said the two dominant industries in the country – tourism and shipping – would not respond to a devaluation as much as was hoped.
Video via SKY News
He said the Greek government invited in a host of economists familiar with such episodes – including Argentinian experts who had witnessed that country’s own devaluation – and concluded that such a move would not benefit Greece.
The revelation the country did its own detailed internal work on the pros and cons of a euro exit comes amid growing suspicions that Greece will soon be elbowed out of the currency.
However, the fact the country’s own analysis ruled out many of the benefits of such a move will undermine the assumption that it would be wholeheartedly positive, either for Greece or for other euro members.
Here an article on Greek Shipping Industry.
“Parker is an economic professor at Harvard University, he advised Papandreou in 2010-2011.”
My blood boils!!!! So much for utterly useless education!