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If Greece ever got to this stage a parallel currency in circulation, capital controls in place and bail-out cash withheld the gap between default and exit would be paper-thin.
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If it falls, Greece could be headed for default and exit from the euro.
But the risk of chaotic default and exit from the euro has receded.
Until recently, a Greek default and exit from the euro zone was seen as unthinkable.
It may then seem a more rational, albeit unpopular, option than a disorderly Greek default and exit, with all the disastrous economic and social consequences for Greece and Europe.
"Policy makers have to recognize the impossibility of the trilemma of no additional funding, no restructuring of official loans, and no default and exit from the euro".
"A Greek default and exit from the euro zone would be devastating to Greece's economy, but no one else's," said Zandi.
"In sum," the Wells economists added, "a sovereign default and exit from EMU by either Spain or Italy could be another 'Lehman moment.'".
Neither are we ready to propose the demarcation line between default and non-default interpretations.
Results show that in both studies, default condition, but not priming condition or the interaction between default and priming, significantly predicted choice (healthier vs. less healthy option).
Argentina tried the deflation route to a real depreciation and, after three years of an ever-deepening recession/depression, it defaulted and exited its currency board peg.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com