am: Gresham’s Legislation is applicable, nonetheless it takes on the fresh new crappy currency will not change within a great disregard when made use of due to the fact an effective MOE. When the locations approved both X Euros or even the exact same X Drachmas for the same a good, somebody would likely shell out Drachmas and you may hoard Euros, identical to into the Gresham’s Rules.
Nick E: on your alternative circumstances (which i consent should be considered), up coming « Drachmas » are really ties, in lieu of currency. On the Warren Mosler Company Credit design (Warren hand away their company cards from the an event, however, won’t help people get-off the area unless they pay a cards) his cards would have no worthy of in the event your authorities gathers less notes within the fees than simply they hand out in pensions.
This is simply not noticeable to me if Drachmas manage in reality be used once the an MOE. Continue Reading However, you to definitely violates my own presumption one to Euros try MOA and you may Drachmas provides a flexible rate of exchange up against the Euro