April 4th, 2012
03:04 PM GMT
London (CNN) – Many of Europe’s best economic minds have been searching for a radical solution to the European debt crisis.
The troubled area's biggest hitters - from the former head of the European Central Bank, Jean-Claude Trichet, to Jose Manuel Barroso of the European Commission - have all failed to prescribe a remedy to the problems facing the single currency.
Jurre Hermans, pictured above, was awarded a $133 gift voucher for his effort to win the Wolfson Economics Prize aimed at finding the best idea on how to exit the troubled euro without bringing down the global financial system.
Jurre submitted a single-page sheet solution to the euro crisis, accompanied by a hand-drawn diagram complete with a miserable-looking Greek, to the organisers of the Wolfson Prize.
His plan his simple: Greece should quit the euro, revive the drachma and slap penalties on those who try to avoid holding the new currency.
"All Greek people should bring their euro to the bank. They put it in an exchange machine (see left on my picture).
You see, the Greek guy does not look happy!! The Greek man gets back Greek Drachme [drachmas] from the bank, their old currency.”
In turn, the Greek government turns to money into giant pizza or pancakes and pays off its creditors by handing out slices.
Jurre has even thought about how to get 100% compliance, (his own collective action clause!), acknowledging that Greeks might not be happy about his plan:
“Now here comes the clever part of my idea:
The Greek people do not want to exchange their Euro’s for Drachmes because they know that this Drachme will lose its value dramatically.
They try to keep or hide their Euro’s. They know that if they wait a while they will get more Drachmes.
So if a Greek man tries to keep his Euros (or bring his euros to a bank in an other country like Holland [or] Germany) and it is discovered, he gets a penalty just as high or double as the whole amount in euros he tried to hide!!!
In this way I ensure that all Greeks bring their euros to a greek bank and so the greek government can pay back all the debts. I hope my idea helps you!!!!”
Jurre's entry hasn’t given us a solution to the orderly exit problem, though it does tells us something –
When the collapse of the eurozone is on the mind of an 11-year old, we’re clearly in a very sorry state.
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