Currency devaluation

A lot of idiots are saying that countries like Greece should leave the eurozone and go back to their own currency.

That would make it possible for them to devaluate their currency.

However, devaluating a currency is not without cost. I tend to say iphones become more expensive.

If a country imports food, food prices will rise. It kind of depends on the economy of the country.

Basically it means that the people in the country will become poorer.

There is no real proper alternative to funneling money from richer to poorer countries.

© Koos Swart 2013