Lucas Papademos Quotes
In the 20 years before Greece end up with the Euro, efforts to improve competitiveness through exchange rate and adjustments resulted only in temporary gains of competitiveness.
Papademos, Lucas. "The Global Economic Outlook." World Economic Forum Annual Meeting, 27 Jan. 2012, Davos, Switzerland.
“Pegged” exchange rates are a country’s money where the Government sets the value of the money in terms of some other currency—usually American dollars. The advantage of a pegged currency is that it is stable and does not fluctuate day to day. The disadvantage is that people realize that the value is artificial and other countries will not accept the pegged currency. Worse natives try and get as many dollars as they can because the fear that the Government will devalue and change the rate of exchange of the pegged currency.
President Richard Nixon, a conservative Republican did not agree with this view as it was he who led America to abandon the gold standard to back its money.
England compromised. They did not give up their own currency—the Pound, but they did make the Euro legal tender, so both currencies can be used in England.
Currency Pegs are policies and commitments that countries make to sate that their currency henceforth will have a fixed relationship to another currency—usually the American Dollar, the English Pound or the Euro. If a second and even more countries also agree to peg their currency to the same, then the counties who are pegging can trust each other’s currency providing economic stability and facilitating trade.
Lucas Demetrios Papademos is a Greek economist who served as Prime Minister of Greece from November 2011 to May 2012, leading a provisional government in the wake of the Greek debt crisis. He previously served as Vice President of the European Central Bank from 2002 to 2010 and Governor of the Bank of Greece from 1994 to 2002.
