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How to Handle the Crisis in Greece?
Report

How to Handle the Crisis in Greece?

Empirical Evidence Based on a Survey of Economics Experts


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Editorial Rating

7

Qualities

  • Comprehensive
  • Analytical
  • Overview

Recommendation

Greece’s economic travails have raised the question of whether it should leave the euro zone. Opinions on the merits of a departure vary, at times widely. Economic researchers Niklas Potrafke and Markus Reischmann conducted a survey of experts around the world to see if any consensus exists on what Greece should do. Written for the most part in plain English, this relevant and accessible report provides ample food for thought. getAbstract recommends it to investors, executives and policy makers.

Take-Aways

  • Whether or not Greece should leave the euro zone is a highly controversial matter.
  • A “Grexit” is one of four options the country faces. Alternatively, the European Union could continue its support, Greece could drastically raise prices, or northern euro-zone members could inflate their prices.
  • A Grexit would restore monetary control to Greece, but negative consequences – higher import costs and crucial shortages – would arise, along with geopolitical concerns.

About the Authors

Niklas Potrafke and Markus Reischmann work at the Ifo Institute-Leibniz Institute for Economic Research at the University of Munich.