Will Greece Sink The Eurozone?

  • What are the risks for Greece to create another eurocrisis? Actually, these are pretty substantial. There are two kind of risks.
  • The first is that under the specific institutional make-up of a currency union, markets are prone to self-reinforcing feedback loops, which we’ll describe in detail here.
  • The second big risk is that the eurozone isn’t an optimum currency union and this situation requires it to rely on a level of solidarity that might very well go.

Will Greece Sink The Eurozone? | Seeking Alpha