tag:blogger.com,1999:blog-5908830827135060852.post980647359966947952..comments2024-03-29T02:54:56.523-04:00Comments on Bond Economics: The Greek FixBrian Romanchukhttp://www.blogger.com/profile/02699198289421951151noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5908830827135060852.post-55457067009080159182015-07-17T12:17:27.749-04:002015-07-17T12:17:27.749-04:00Creating a new central bank and currency is easy. ...Creating a new central bank and currency is easy. The problem is the existing banking system, as well as the private sector (and government bonds) are still denominated in euro. That legacy system is still in trouble, until the government passes legislation to deal with those problems. This is why I view the best option is to keep Greek euros, but break the link with the rest of the euro area.Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-36795158839532183632015-07-17T08:47:31.900-04:002015-07-17T08:47:31.900-04:00What is the likely near-term result if Greece clos...What is the likely near-term result if Greece closed it's central bank? In it's place, Greece would allow other euro banks to setup shop in Greece.<br /><br />I have not thought this through. My initial reaction: Greece would become something like an American state so far as banking services were concerned. (A contra-example would be Montana which for may years prohibited any but wholly Montana owned banks from operating in the state. This rule has been repealed.) Roger Sparkshttps://www.blogger.com/profile/01734503500078064208noreply@blogger.com