Greece’s best chance of survival may be to stay in the euro but opt for its own parallel currency or “Geuro,” according to Deutsche Bank’s head of research, Thomas Mayer.
In a research piece, Mayer said the Geuro would help Greece balance its primary budget without financial support from the 'Troika' of international lenders (the International Monetary Fund , the European Union and the European Central Bank ). This would allow the incoming Greek government to reject the strict austerity program on which aidis contingent.
“A plausible response of the Greek government to the shortage of euro cash, as a result of the end of financial transfers, would be to issue debtor notes to its creditors, promising payment as soon as fresh euro cash would be available,” Mayer said.
“As creditors lacking euro cash would have to use the IOUs to settle their own bills, these instruments would assume the role of a parallel currency (let’s call it Geuro),” he said.
Mayer said the Geuro would allow Greece to devalue its currency without formally exiting the euro and readopting the drachma .
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