Greek revolt over austerity is long overdue

Greek Left Review

Peter Morici
Monday, 9 Feb 2015 | 11:41 AM ET

Germany has been sacking Greece and other Mediterranean economies for years, and the Hellenic revolt against austerity is overdue.

Greek Prime Minister Alexis Tsipras addresses to the parliament members during government’s policy statement in Athens, on February 8, 2015.

When the euro was established in 1999, prices were translated from the mark, franc and other currencies into euro at prevailing exchange rates. (Greece joined the euro zone in 2001, giving up the drachma.)

National prices reflected differences in labor costs and efficiency across countries, but owing to a variety of social and demographic conditions, productivity improved more rapidly in Germany and other northern countries. Making goods in the South became too expensive, and Greece and others could no longer export enough to pay for imports.

Without a single currency, the values of the drachma and other Mediterranean currencies would…

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