It's out of the U.S. headlines, but news from Cyprus keeps getting worse.
Cyprus forced to find extra €6bn for bailout
This is all a stratosphere beyond my understanding, but is there any reason whatsoever for Cyprus to stay in the eurozone?* All the banking disruption that such a move would precipitate has already happened anyway. If the country exits, it can devalue its currency and at least maybe become a real cheap destination for tourists. At least that's a theory. Otherwise, where does its economy come from? The equivalent "devaluation," if Cyprus stays in the eurozone, will be through major unemployment, and drops in wages too. Right?
By the way, if you're curious, last month I was updating my previous Cyprus thread whenever I noticed a new idea or analysis. Not that the analyses are mine. I provided links.
Meanwhile, warning flares are shining in the sky above Portugal.
*By "eurozone" I don't mean the European Union, rather just the members whose currency is the euro.
Cyprus forced to find extra €6bn for bailout
This is all a stratosphere beyond my understanding, but is there any reason whatsoever for Cyprus to stay in the eurozone?* All the banking disruption that such a move would precipitate has already happened anyway. If the country exits, it can devalue its currency and at least maybe become a real cheap destination for tourists. At least that's a theory. Otherwise, where does its economy come from? The equivalent "devaluation," if Cyprus stays in the eurozone, will be through major unemployment, and drops in wages too. Right?
By the way, if you're curious, last month I was updating my previous Cyprus thread whenever I noticed a new idea or analysis. Not that the analyses are mine. I provided links.
Meanwhile, warning flares are shining in the sky above Portugal.
*By "eurozone" I don't mean the European Union, rather just the members whose currency is the euro.