Modelling and simulation of parallel monetary systems for countries without their own currency

Abstract

Greece is one of the countries still struggling after the financial crisis in 2008. With a debt burden of almost the double the gross domestic product, they are in a situation where repaying the debt can seem nearly impossible without extreme measures. This thesis will examine Trond Andresen s idea from 2010, to implement a parallel currency issued out by the Greek government, alongside the Euro. First, a generic model will be made describing a land in crisis, then this model will be simulated with values that correspond to the economic situation in Greece in the time frame 2008-2015. The results shows that under the assumptions made for this model, this new currency, if it gets into circulation, will slowly induce growth to the gross domestic product, which will enable Greece to repay their debt and stabilize their economy. This may be a viable solution to the economic situation in Greece, if the EU allows it.