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.”
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