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Benefits and Costs of Greece's Exit from the Euro

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  • Charles B. Blankart
  • Sven Bretschneider

Abstract

The classical instruments for dealing with state bankruptcies that have been implemented for years are debt rescheduling and subsequent devaluation. Charles B. Blankart and Sven Bretschneider, Humboldt-University of Berlin, take matters a step further: after debt rescheduling an exit is necessary to achieve devaluation. However, that is also the problem. Most European politicians shy away from an exit. In their commentary Blankart and Bretschneider weigh up what is better for the euro union in a cost-benefit analysis: an exit or "more of the same".

Suggested Citation

  • Charles B. Blankart & Sven Bretschneider, 2012. "Benefits and Costs of Greece's Exit from the Euro," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 65(09), pages 12-16, May.
    • Handle: RePEc:ces:ifosdt:v:65:y:2012:i:09:p:12-16
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    References listed on IDEAS

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      • Charles B. Blankart, 2011. "The euro in 2084," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 64(16), pages 20-24, September.
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    8. Elmar Brok, 2009. "Postscript: threatened insolvency of a euro area country: What should the EU do?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 62(09), pages 18-21, May.
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    2. Kappius, Robert & Neumärker, Bernhard, 2015. "Could exit rules be self-enforcing in the EU? The cases of France and Germany," The Constitutional Economics Network Working Papers 02-2015, University of Freiburg, Department of Economic Policy and Constitutional Economic Theory.

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    More about this item

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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