Europe's Stealth Bailout
While Europeans debate the pros and cons of bailing out Greece, a bailout already is taking place under their very noses thanks to the declining euro.
By helping to increase Greek exports, the slumping euro is providing Greece’s budgetary authorities the wherewithal for increasing tax revenues necessary for fiscal consolidation.
So far, the crisis has caused a decline of almost 15 percent in the euro’s value against the U.S. dollar, and more may be coming. By sparking a badly-needed correction for an over-valued currency, the crisis has created its own solution.
The euro’s fall is being welcomed in all the euro-zone capitals — Athens as well as Berlin, Paris and Madrid.… Seguir leyendo »