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Martin Stuart Feldstein (George F. Baker Professor of Economics at Harvard and also president emeritus of the National Bureau of Economic Research (NBER) ) talked about the prospects of a Greek euro exit in an interview at Bloomberg.
He expressed the opinion that there is no specific formula that the countries can follow in order to solve their economic problems. Each country is different... and in the case of Greece and there is no solution but to exit the euro zone since the country's economy is in terrible situation that can not be fixed...
“Well, I think it would create chaos, it would create problems” says Mr. Feldstein and he adds,
“It would be better for Greece to be able to adopt a new currency, a drachma, allow the currency to fall as currencies did in East Asia and in Latin America; that would give a significant boost to growth in Greece as Greeks shift their spending to domestically produce goods and services.”
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In his article in "Financial Times Deutschland", the famous economist Nouriel Roubini, who had predicted the global recession of 2008 in 2006, says that either this year or the next, Greece will be forced to go bankrupt and leave the eurozone. This will happen even if a government will finally be formed after the elections of June.
Mr. Roubini says that Greece has fallen into a vicious cycle of bankruptcy, lack of competitiveness and continuous recession.
Former Greek Minister of Finances Giorgos Papakonstantinou Interviewed by “Zeit”: “We’re reaching our limits”
DIE ZEIT: Mr. Papakonstantinou, the EU released on Monday the next aid package for Athens. Greece is now saved?
Giorgos Papakonstantinou: The decision enables a fresh start. It secures our funding and signals to the people that at some point in the future things are going to get better.
TIME: At the moment the Crisis is still accelerating.
According to Deutsche Welle, the German manager warned Greeks to avoid by all means a return to the drachma. An exit scenario would be catastrophic for Greece making the country more poor than Albania:
"If Greece returns to drachma, VW cars would be replaced with donkey carts in Greek roads! Greece will become poorer than Albania. That's the truth and it should be said clearly to the Greek people."
On the other hand,Klaus Kalntemorgken is facing the future of Eurozone with optimism. He is pleased with Angela Merkel's management on the debt crisis which according to Kalntemorgken aims to restore fiscal discipline. Moreover, he believes that the political change in Italy is positive development and that Europe has the potential to overcome most of its problems even in the first quarter of 2012.
According to the New York Times scenario, the return to the drachma will trigger a series of unpleasant events such as the seizure of power by the military:
"As the country descends into chaos, the military seizes control of the government..."
"...lines of angry Greeks form at the shuttered doors of the country’s banks, trying to get at their frozen deposits. The drachma’s value plummets more than 60 percent against the euro, and prices soar at the few shops willing to open."
Devastating consequences for the tourism industry of Greece, due to uncertainty raised by the political chaos
As indicated by the newspaper "Proto thema", during the largest European tourism exhibition (WTM) in London, operators refuse to pay advances on contracts signed for the new season with the excuse that they are unsure if tomorrow Greece will be a member of the eurozone and the country's currency will be the euro!
For the first time during this year's exhibition, tourism agreements for Greece are not signed.
This movement puts at risk thousands working positions in the tourism sector, since without the advance payments, many hotels will not be able to operate for the 2012 season.