A Question for any economists

[Keith Jackson]

If Greece drops out of the Euro :

 

[a]What will the cost of living in Greece be come?

 

What happens if they drop out while people are on holiday there and using Euro's?

[Len Baker]

If Greece drops out of the Euro :

 

[a]What will the cost of living in Greece be come?

 

What happens if they drop out while people are on holiday there and using Euro's?

 

Keith, I'm no economist but from what I've read in the papers if Greece drops out of the Eu its going to result in economic instability for months.

 

I read it would take several months to introduce a new currency. 2 major things have to happen. Firstly, the new currency has to be printed & coined and all to logistics sorted e.g. vending machines, note machines etc changed.

 

Secondly they have to state a currency changeover date & a conversion rate from euros. All mortgages, transactions pending, wages & salaries etc have to be recalculated.

 

I guess the changeover date is key as to what currency visitors would need. They could allow 2 currencies at the same time for a period, converted at the changeover rate, just to help the confusion.

 

Pundits were saying that for months after a change of currency there would be a period of inflation. The main issue Greece have is how to kick-start their economy. Much depends on how much of their existing debt is cancelled or re-negotiated.

 

The cost of living will be all over the place. Will they try to exploit tourism?

 

I think it will deter tourists until it settles down but if there are bargains to be had I'm sure we will flock there in our thousands.

 

Len

[Little Nell]

Thanks for that, Len. I haven't had much time to read in depth articles lately.

[kalos]

Think what Len has put sums it all up and I would add if you are going that it would be advisable to take extra Euros but in lower

denominations so you would not be stuck for cash should the worst happen.

Experts seem to think the cash machines would be first hit, hence extra cash.;)

 

Not so sure personally I would jump at the chance of a bargain cruise if the finances had collapsed ,every chance that tourist crime

would rise .:eek: :)

[Red Scorpion]

When Czechoslavakia split in two the Czech economy was much stronger than the Slovak economy so the Slovak currency (which were the same notes) had to have stickers attached to them to show that they were Slovak and not Czech. In what I still believe is the unlikely event of Greece leaving the Euro the Greeks would probably have to do something similar until they could get a new currency printed. They would then face the further difficulty of Greeks attempting smuggle Euros that had not been 'stickered' out of the country. Quite difficult in a country with so many islands and miles of coastline, especially when you cannot afford to employ more customs officers. The one thing we can say with certainty is that the situation in Greece would be very uncertain.

 

In truth the biggest problem British tourists to Greece would be likely to face would not be the situation in Greece itself since tourism is just about the only export industry Greece has (I know that it doesn't sound like an export industry but effectively it is) so they will bend over backwards to keep us happy. The biggest issue for us Brits would be the knock on effect on the Greek banks and then the British banks and then the British economy and then our ability to afford holidays in the first place. Sorry about the gloom but it would be better for us all if Greece stayed in the Euro and something was done to bolster their economy which is shrinking by 6% a year which makes our recession look like peanuts.

[Len Baker]

When Czechoslavakia split in two the Czech economy was much stronger than the Slovak economy so the Slovak currency (which were the same notes) had to have stickers attached to them to show that they were Slovak and not Czech. In what I still believe is the unlikely event of Greece leaving the Euro the Greeks would probably have to do something similar until they could get a new currency printed. They would then face the further difficulty of Greeks attempting smuggle Euros that had not been 'stickered' out of the country. Quite difficult in a country with so many islands and miles of coastline, especially when you cannot afford to employ more customs officers. The one thing we can say with certainty is that the situation in Greece would be very uncertain.

 

In truth the biggest problem British tourists to Greece would be likely to face would not be the situation in Greece itself since tourism is just about the only export industry Greece has (I know that it doesn't sound like an export industry but effectively it is) so they will bend over backwards to keep us happy. The biggest issue for us Brits would be the knock on effect on the Greek banks and then the British banks and then the British economy and then our ability to afford holidays in the first place. Sorry about the gloom but it would be better for us all if Greece stayed in the Euro and something was done to bolster their economy which is shrinking by 6% a year which makes our recession look like peanuts.

 

Totally agree Red Scorpion. There are so many unknowns & as you say we may not be able to afford holidays. I personally take what pundits say with a pinch of salt as who knows how this mess will pan out & the time scales involved.

 

Regarding Czechoslovakia & the formation of the Czech Republic & Slovakia what happened to the country "o" ?;)

[Isis2]

Saw on the Breakfast telly this morning, they had a money expert on, and he advised everyone to take cash, because as there has been a "run" on the Greek banks, he was saying that you could turn up at a cash point and it may not work, due to lack of money.:eek: