Greek Drachma
Candlefocus EditorThe Greek drachma was a decimalized currency, originally with the Greek alphabet used on the drachma notes, which placed denominations from 10 to 500 drachmae. Smaller denominations of 1 and 2 drachmae were issued earlier
The Greek drachma was considered a stable currency until 2002, when Greece began to suffer from economic and fiscal turmoil. This instability in economic growth eventually led to the Greek government proposing a new fiscal austerity plan. After 16 years with the Euro, speculation surrounding the reintroduction of the drachma as the main currency began to gain support in 2010, after Greece’s sovereign debt crisis.
Supporters of the Greek Drachma often argue that Greece needs the drachma to fix the economic issues it faces due to its reliance on EU and ECB funding. To them, reverting to the drachma would not only put the country back in control of its fiscal policies, but it would also provide more control over its monetary policies, helping Greece to recover from its economic crisis.
Opponents of the Greek Drachma argue that the reintroduction of the currency would further damage the country's economy, as well cause significant uncertainty in the markets. Furthermore, it is likely that the country and its citizens would switch to the Euro if Grexit were to happen, as it is confident in the stability and anti-inflationary measures of the Euro. In addition, the reintroduction of the drachma would hurt Greeks because prices would rise due to an inflated exchange rate and the devaluation of the currency, thus impoverishing them.
The debate continues surrounding the reintroduction of the Greek Drachma as the main currency and its implications. Supporters argue that the movement will help Greece in getting back on track, while opponents argue that it will bring more chaos to the already volatile financial crises. Whichever the choice, it will bring significant economic disruption.