Publication

This brief examines developments in the debt negotiations between Greece and its creditors before outlining why there will be no Greek exit from the eurozone. The author contends that there are three reasons why Greece will not leave. These include 1) the likelihood of workers demanding higher wages to counter expected devaluation, an act which would neutralize any potential benefits of leaving the currency; 2) the significant cost of adopting a new currency; and 3) setting a precedent for other eurozone members to potentially leave the monetary union.