Jason Manolopoulos, the hedge-fund manager who wrote “Greece’s ‘Odious’ Debt,” has news for anyone wondering whether the country will exit the euro: The drachma has already returned.
In the run-up to national elections on June 17, New Democracy leader Antonis Samaras has painted a bleak picture of what will happen if Greece leaves: Incomes, bank deposits and property would lose at least half their value within days, he says; food prices would soar. Is that an accurate assessment?
“Greece is already going back to the drachma, partially,” Manolopoulos says. By his estimates for the private sector, “devaluation has happened to some extent. Wages are down approximately 35 percent and taxes are up. So disposable income is down 50 percent at least. Rents are down between 35 and 40 percent.”