Economic crisis: The global impact of a Greek default - AEI

Economic crisis: The global impact of a Greek default - AEI

Introduction

Recent economic and political developments in Greece suggest that it is only
matter of time before that country both defaults on its large public debt and imposes
capital controls. Those developments could very well pave the way for Greece’s exit
from the Euro within the next twelve months. Were that to occur, one must expect
that Greece’s economic and political crisis will deepen, which could lead to that
country becoming a failed state.