OREANDA-NEWS The former economist at the New York Federal Reserve Bank, David Barker, shared his thoughts on the cost of purchasing Greenland in an interview with The New York Times.

In his opinion, the acquisition of the island would cost President-elect Donald Trump between $12.5 billion and $77 billion.

Barker based his calculations on the cost of the United States' acquisition of the Virgin Islands from Denmark in 1917. At that time, it cost Washington $25 million, which is approximately $657 million in today's currency.

According to the economist, the current price would take into account the size of the GDP of both the United States and Denmark, as well as its change compared to 1917. "A larger economy can afford to pay more, while a smaller one will require a higher price," Barker stated.

The GDP of Denmark has increased by a factor of 500, so the initial cost of Greenland can be estimated at 12.5 billion dollars, he pointed out. The value of Alaska, which was acquired by the United States from Russia in 1867 for $7.2 million, will also be taken into account. Now, considering the growth of the US GDP, the price of this territory would be $77 billion.

Earlier, Reuters reported that Republican members of the US Congress had drafted a bill that would allow Trump to start negotiations on the purchase of Greenland as soon as he takes office.