Benefits and Costs of Greece's Exit from the Euro

The classical instruments for dealing with state bankruptcies that have been implemented for years are debt rescheduling and subsequent devaluation. Charles B. Blankart and Sven Bretschneider, Humboldt-University of Berlin, take matters a step further: after debt rescheduling an exit is necessary to achieve devaluation. However, that is also the problem. Most European politicians shy away from an exit. In their commentary Blankart and Bretschneider weigh up what is better for the euro union in a cost-benefit analysis: an exit or "more of the same".