Economic Consequences of Grexit: Legislative framework and economic implications of Greece's withdrawal from Eurozone

This work tries to quantify the impact a Grexit would have on the Greek, the European and the global economy. In general, two effects will determine the effects on economic key figures: 1.) The heights of bad debt losses for Greece's creditor states (given a Greek national bankruptcy is likely in case of Grexit) and 2.) The amount of depreciation of the new Greek currency ("New Drachma"). The work compares two different quantitative studies that simulated Grexit scenarios, analyzes the assumptions they are based on and examines whether they are realistic. Finally, it compares the economic consequences of Grexit with those a remaining of Greece in the Eurozone would have and which alternative is more suitable to manage the current crisis and to prevent future ones.