What if Greece leaves the eurozone? Nice article by AP

FRANKFURT, Germany — Let Greece go. It’s a possibility that’s being considered more and more publicly in Europe.There have been two and a half years of bailouts and broken promises by Greece to reform. The result: a fifth year of recession and, this week, political chaos. Voters on Sunday favored parties that either oppose the country’s international bailout or want to renegotiate it. If it cannot get more rescue loans, Greece will go bankrupt and likely have to leave the eurozone, the currency union of 17 countries.The question confronting leaders in Athens, Berlin and the other eurozone capitals could soon be:What would happen if Greece left the euro? How much damage would that do to it and other countries in the eurozone? Has Europe insulated itself to a degree that it can cut Greece loose, while keeping its currency alive?

via Greek euro exit no longer unthinkable | cleveland.com.

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About mkevane

Economist at Santa Clara University and Director of Friends of African Village Libraries.
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