[Marxism] Convert to the Drachma – Piece of Cake. Right… | naked capitalism

Patrick Bond pbond at mail.ngo.za
Thu Jul 16 06:35:48 MDT 2015

Who has lessons from the other two post-2000 cases of high-profile 
desperation currency conversions, namely Argentina (leaving US$ peg in 
2002) and Zimbabwe (losing its own currency in 2009)?

In Zim's case, I was there when it happened and the story is reasonably 
straightforward, namely hyperinflation at what seemed like a gazillion % 
at the worst, so that everyone had turned to (illegal) hard currency to 
survive, namely trading in the South African rand and US$. By the time a 
new government of national unity set up in February 2009, the transition 
was effectively complete and the accounting gimmicks required to end the 
zany 000's were quickly retired. But these aren't lessons for Greece.

Does Argentina have a better story?

And let's never forget Keynes on this matter, eh: "I sympathise, 
therefore, with those who would minimise, rather than with those who 
would maximise, economic entanglement between nations. Ideas, knowledge, 
art, hospitality, travel - these are the things which should of their 
nature be international. But let goods be homespun whenever it is 
reasonably and conveniently possible; and, above all, let finance be 
primarily national." (The Yale Review, Summer 1933)

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