Greek Retail Sales Collapsing
Greek Retail Sales Collapsing
A blog about business and economics.
May 31 2012 9:52 AM

Greek Retail Sales Collapsing


See above.

Recall that in a well-balanced economy, what happens is that consumer income that isn't spent is saved and savings are transformed into investment and then workers need to shift out of consumption-serving sectors and into investment-serving ones. Suffice it to say that's not what's happening in Greece. Money is just flowing out of the country. In a country with currency sovereignty, that would push Greek prices down and spur foreigners to consumer Greek stuff either by buying imports or by visiting. But that's not what's happening in Greece either.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.