There’s much written on Greece defaulting on it’s debts and exiting the Euro. Business Insider’s review of CitiGroup’s chief economist Willem Buiter thoughts on the subject is one such. I’ll restrict my opinion on the situation to that of the mechanics of managing the exit of Greece from the Euro area, which I don’t think is likely to happen, certainly in the short term.
If Greece reverted to the drachma, what would convince Greek owners of Euro’s to convert to the drachma. Well, it might be that all Greek denomiontaed Euro notes and coins would need to be exchanged. A Greek Euro note, I hear you say. I thought the point of the Euro was that it’s a single currency and they all looked the same, irrespective of country.
Yes, they are the same. But, did you know that the serial number on Euro banknotes shows where they were issued, and therefore makes them different. Take a look at the Wikipedia pages on the Euro and on Euro Banknotes, and all will be, surprisingly, revealed. Euro coins we know have a national design on one face, and a common design on the other face – see HERE for Greek Euro coins.
Much as some places refuse to take Scottish bank notes, would Greek serial numbered Euro’s and coins be rejected. Just a thought.