It Lost 244% of Its Value? Impossible
By David Henderson
In an otherwise good article in today’s Wall Street Journal, “Just Say Nein to Eurobonds,” Matthew Will writes:
From 1980 to the launch of the euro in January 1999, the Italian lira and Portuguese escudo lost 108% and 244% of their value against the U.S. dollar, respectively. Greece devalued the drachma 583% against the dollar from 1981 until its euro entry in January 2001.
Impossible. An item, whether a good, a service, or a currency, cannot lose more than 100% of its value unless it becomes garbage that you need to pay someone to haul away.