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Greek IOUs may be the first step towards the exit

With a bailout payment still not forthcoming, the Greek Government might have to resort to IOUs to pay public sector workers. While they could serve as a brief stop-gap, they would not solve Greece’s fundamental problems, which require an exit from the euro-zone and debt forgiveness (or default). In fact, an attempt to use IOUs as a parallel currency might hasten Greece’s exit from the euro-zone.

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