cure inflation
this very targeted purpose perhaps missed the greater use of such a mark up market
to socially control the changes in the price level
greece today needs such a social mechanism design
to allow orderly reduction of its relative price level within the euro zone
compared to its "partner systems "
the national economy can not adjust its trade balance by a simple if grave deval
the system is multinational
at the same time greece devals germany a major surplus trader vis a vis greece
must virtually reval ...not possible eh ??
within a unified currency zone
so it has to come thru relative rates of change in either import absorption or price level moves
now forex allows a very precise adjustment to a trade imbalance by
incentivizing a rise in import prices and a lowering of export prices on trade able products
ie getting the substitution effect working
while leaving non trade ables "as is " at least in terms of their own va
the price level mechanism however can by broader means get the system the real system to the same place
