An article in the Wall Street Journal discussing the possibility that Greece might leave the eurozone observes:
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An article in the Wall Street Journal discussing the possibility that Greece might leave the eurozone observes: “Traditionally, devaluations are viewed as providing a short-run spur to growth.”
a. Explain why the Greek economy might experience an increase in growth following a departure from the eurozone.
b. Why might Greece choose to remain in the eurozone despite your answer to part (a)?
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Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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