Thursday, November 10, 2011

Roubini : Italy should go back to the Lira

Nouriel Roubini : Even a restructuring of the debt – that will cause significant damage and losses to creditors in Italy and abroad – will not restore growth and competitiveness...if you cannot devalue, or grow, or deflate to a real depreciation, the only option left will end up being to give up on the euro and to go back to the lira and other national currencies. - Roubini wrote in The Financial Times

1 comment:

diabolik said...

Dear Sir

Italy has no need at all to restructure its public debt, nor to abandon the euro. Probably your information are superficial. Italy has at the moment a primary budget surplus, and next year (2012) its whole budget will become in surplus. Italy will cut the cost of financing its debt by real guarantees, so that the cost for interests in the budget will become very low. Then, Italy will become its reform; social welfare, politics, public expenditure, social relations in way that italian bonds will probably become one of the best assets in Europe. The question of Euro is different. It's probable than in a more or less far future Italy will quit that area, because it's not convenient for us. But we will decide it on the base of our convenience, not on the wage of a necessity that we don't have.

Best regards

A. Chiavacci

Master in international economy

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