Re: Greek Banks Planning To Raid Deposits To Avert Collapse
If you are in the EU you can't just issue more on your free will, there is a regulatory body over-watching this in the entire EU. Otherwise every country would just print and pay with that.
That is correct. Not even Germany has the power to print as many Euro banknotes as they want. The require permission from the ECB.
If there is no such mechanism in place, then what happened in Zimbabwe and Yugoslavia will happen in the EU as well. In the 1990s, the Yugoslavian Dinar underwent a period of massive hyper-inflation, as individual central banks in Vojvodina, Kosovo, Belgrade and Montenegro started printing as many notes as they wanted. And the result is this:
