Poll by Durex

Greece could solve its problems with the austerity plan, or like any of the other countries by raising taxes (mostly on the rich) and spending simultaneously. If they don’t, well… it’s mostly the financial industry that would be affected in important ways.

The paradox that countries prefer not to have a strong currency, yet are unwilling to decrease wages and prices on their own… of course all explained if people are treating income as a signal and have a pre-determined idea of what constitutes ‘success’.

Maybe the fact that static costs like rents are less likely to decrease in price has something to do with it? While if a country’s currency weakens, it increases prices for outside goods but not those static costs ingrained into contracts and laws.

(I believe Brazil’s hyperinflation was partly due to that these ‘static’ costs were indexed to the measured inflation rate? As well as printing money of course..)

So this might suggest that a legal reduction in the debts or rents of private individuals would have the same effect on the economy as a weakened currency. I am not sure if people are just not imaginative enough to think of this… I read that ~80% of Greek people want to keep the Euro.