Greek deadlock drives increased eurozone fears

Greek deadlock drives increased eurozone fears

By Charles Grant, 15 May 2012
From ABC News

But Charles Grant, director of the CER, says the Greek economy will be thrown into greater turmoil if it exits the currency bloc. Without the financial support of the eurozone and the International Monetary Fund, Greece will have to print money to pay salaries and pensions. "You'd get hyper-inflation, at the same time Greece would devalue its currency, so it would become more competitive and it might start to export more, [but] it wouldn't take away the need for austerity," Mr Grant said.

Link to press quote:
http://www.abc.net.au/news/2012-05-15/greece-remains-in-political-deadlock-after-talks/4011218