Amongst the negotiations between Greece and the Eurozone leaders, there currently exists the possibility of Greece leaving the Eurozone for five years.
Does this imply Greece would have to use a different currency for only the next five years?
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Sign up to join this communityAmongst the negotiations between Greece and the Eurozone leaders, there currently exists the possibility of Greece leaving the Eurozone for five years.
Does this imply Greece would have to use a different currency for only the next five years?
There´s several possibilities, but they are all speculative.
My guess is that its not too hard to tell a story like this one: They could leave the monetary union, declare all local deposits and debts to be in drachmas and then move on, printing drachmas and taking them in for tax payments. Later on, when the economy is growing and the fiscal deficit has become manageable, they would apply to be part of the Eurozone again.
This is discussed on Wikipedia at the Legal environment section of this article : Withrdawal from the Eurozone