Publication

This paper discusses whether a Grexit (Greece's exit from the eurozone) and the country's subsequent return to the drachma would be of benefit to the country's economy. The authors argue that, should Grexit occur, devaluing the drachma to escape economic depression - much as Argentina did after dropping its peg to the US dollar in late 2001 - is unlikely to help Greece. They point out that this is largely due to specific problems relating to Greece's main export industries - oil and shipping and tourism - which although strong, will not be able to make up for the weakness of the overall economy.