BBC: Greece does not have its own central bank that print money
Om man har en sedelpress går man inte i konkurs, skrev jag på denna blog den 4 november.
BBC har en motsvarande beskrivning på engelska, daterad den 7 november, lustigt nog samma dag som jag lagt ut en engelsk version av mitt inlägg, efter att inte ha fått in det i Financial Times.
Jag skrev:
If you have a printing press you don´t go bankrupt
When a country enters a monetary union, like EMU, all debts become foreign debt in the meaning that the central bank in the country cannot print money... Read more here
BBC skrev:
When it was created in 1999, there was a fatal flaw. While governments shared a single currency, they continued to have their own separate bond markets.
It was an accident waiting to happen.
Normally, a government is the master of its own currency. It can order its central bank - the currency's guardian - to print as much money as is needed to repay its debts.
Now consider the euro.
Unlike the UK, Greece does not have its own central bank that it can rely on to print money and buy its debts. So many investors have sold Greek bonds. But they could not sell the drachma. There is no drachma to sell.
Instead they could freely move their cash into safer government bonds - German government bonds.
And that made the value of Greece's bonds plummet.
BBC Full text
BBC har en motsvarande beskrivning på engelska, daterad den 7 november, lustigt nog samma dag som jag lagt ut en engelsk version av mitt inlägg, efter att inte ha fått in det i Financial Times.
Jag skrev:
If you have a printing press you don´t go bankrupt
When a country enters a monetary union, like EMU, all debts become foreign debt in the meaning that the central bank in the country cannot print money... Read more here
BBC skrev:
When it was created in 1999, there was a fatal flaw. While governments shared a single currency, they continued to have their own separate bond markets.
It was an accident waiting to happen.
Normally, a government is the master of its own currency. It can order its central bank - the currency's guardian - to print as much money as is needed to repay its debts.
Now consider the euro.
Unlike the UK, Greece does not have its own central bank that it can rely on to print money and buy its debts. So many investors have sold Greek bonds. But they could not sell the drachma. There is no drachma to sell.
Instead they could freely move their cash into safer government bonds - German government bonds.
And that made the value of Greece's bonds plummet.
BBC Full text
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