Good ideas and conversation. No ads, no tracking. Login or Take a Tour!
It very well may be initially. There are a number of issues with it, and I believe that runs on the banks is one. For that reason, I think that governments like to default by surprise.
It may also be very hard for Greece to sell debt for some time. That said, in the long run, it may very well be the less painful choice. By defaulting, they do get to clean the slate to and extent, and they do gain the new option to print currency as a method of financial stimulus. Argentina defaulted in 2002, here are some effects: http://en.wikipedia.org/wiki/Argentine_economic_crisis_(1999... But, things seemed to work out in the end for them: http://en.wikipedia.org/wiki/Argentine_economic_crisis_(1999...
–
I don't think they risk being kicked out of the EU. The United Kingdom is part of the EU, but they don't use the Euro. But they would be kicked out of the Eurozone, which is mostly comprised of the countries that use the Euro.
http://en.wikipedia.org/wiki/Eurozone Here's a map: http://en.wikipedia.org/wiki/File:Euro_accession.svg
