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And that's precisely the problem. Greece is in the Euro and shares the same currency with France, Germany, Netherlands, etc, so while normally its Drachma would plummet to an insanely cheap rate and boost tourism and exports, this doesn't happen.
Sure, the Euro has suffered due to this debt crisis, but nowhere near to the extent needed to make Greece competitive again. The result: the country will need years of recession in order to deflate its way back down. Either that, or somehow find a way to leave the Eurozone, which will be a logistical nightmare and a political disaster.
This whole episode looks like the months before Argentina was forced to let go of its 1:1 Dollar/Peso peg back in 2001.
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