A Temporary “Grexit” Is Just the Right Respite

A temporary exit from the eurozone by Greece would go a long way towards adjusting trade and other imbalances that would relieve pressure in the current eurozone crisis and quickly restore growth to the country, Wharton finance professor Franklin Allen said. The problem with many of the other fixes being suggested for the eurozone at present: They take too long to work, and would allow the crisis to escalate, perhaps dangerously. The quickest solution is temporary leave from the eurozone — in this case by Greece – that would lead to normal growth within one to two years, and allow Greece to rejoin the group in “five to 10 years,” Allen said.  He made his comments in a keynote address at the recent Wharton Global Alumni Forum in Milan.

A video of the full presentation is available below:

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