Wednesday, September 21

These prices suck! 10,000 yen for coleslaw?

It will be interesting to see how the collapse of greece ends up affecting lithuania in the future. First off, it probably means LT will never be allowed to join the Euro. I would be surprised if the core members of the Euro will ever let another country join. That's assuming the Euro the survives, but what if it is disbanded. What will LT do, will they tie their currency back to the dollar? I would think they might try it to the mark (assuming germany brings the mark back when the euro is disbanded.) In either case if they tie to a different currency, will they do it at whatever the current exchange rate is? 2.345 litai per the dollar, or whatever it turn outs, or round to an easier figure. Or will they just let the currency float and let investors take it where they might?


Blogger Aras said...

They did let Estonia still join after the Greece debacle began. I thought for sure they would halt it, but they didn't.

1:33 AM  
Blogger Trashcan said...

but the mechanisms were already in place weren't they? They didn't have a vote or anything to let them in, they would have had to have some sort of vote to keep them out despite earlier agreements. correct me if i'm wrong because i don't know, i'm just guessing. Maybe LT has some sort of automatic trigger that might get them in anyway too, but if there is a vote and an country has to approved i don't think it will happen.

12:18 AM  
Blogger Aras said...

You are right, but I thought the process would be stopped in Estonia--it still required some final approval. Lithuania does not have an automatic trigger, only a point when they will be eligible.

7:43 AM  

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