The Big Question: What will happen to the eurozone if Greece leaves?

Jan Luthman co-head, Liontrust macro team     Contagion For Greece itself, default and eurozone exit would mean exclusion from capital markets, a surge in imported inflation and a probable need for the government to print money to pay its employees and pensioners. There would be a real risk of descent into hyperinflation and ruin. For the eurozone, the vital issue would be to avoid contagion. Given this imperative, there would be no incentive to ease Greece’s plight. For, if Greece were enabled to achieve a soft landing, then the pressure from electorates of other heavily indeb...