Capital Economics

The leading macroeconomic research consultancy

European Economics Focus

European Economics Focus

Greek default - causes and effects

The markets are right to think that a likely second bail-out for Greece over the coming months will not preclude some form of debt restructuring or default. But we suspect that they are too sanguine about the likely effects of such an event on the euro-zone’s economies and financial system, and on the stability of the currency union itself.

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