{"id":293277,"date":"2010-02-08T11:10:09","date_gmt":"2010-02-08T16:10:09","guid":{"rendered":"http:\/\/www.businessinsider.com\/heres-why-its-impossible-for-greece-to-back-out-of-the-euro-2010-2"},"modified":"2010-02-08T11:10:09","modified_gmt":"2010-02-08T16:10:09","slug":"what-happens-if-greece-leaves-the-eurozone-a-massive-run-on-the-bank-thats-what","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/293277","title":{"rendered":"What Happens If Greece Leaves The Eurozone? A Massive Run On The Bank, That&#8217;s What"},"content":{"rendered":"<p><img decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/image\/4b7036870000000000611de3\/drachmas.jpg\" border=\"0\" alt=\"drachmas\" \/><\/p>\n<p><a href=\"http:\/\/www.marginalrevolution.com\/marginalrevolution\/2010\/02\/why-its-hard-to-greece-to-back-out-of-the-euro.html\">From Marginal Revolution<\/a>:<\/p>\n<p>Talk of Euro abandonment would trigger an immediate run on Greek  banks, sending the country into an even deeper hole.&nbsp; Who wants a Euro  deposit to be converted into a drachma deposit?<\/p>\n<p>You could imagine keeping current Euro-denominated deposits and  adding new drachmas to the system, circulating at a flexible exchange  rate.&nbsp; That still might trigger a bank run (who expects the parallel  currencies to last forever?).&nbsp; Furthermore the new drachmas would bring  seigniorage only if the law forces their overvaluation in some manner;  refer back to the earlier discussion of the bank run.<\/p>\n<p><strong><a href=\"http:\/\/www.marginalrevolution.com\/marginalrevolution\/2010\/02\/why-its-hard-to-greece-to-back-out-of-the-euro.html\">Read the rest at Marginal Revolution &#8211;&gt;<\/a><\/strong><\/p>\n<p><span style=\"color: #888888;\"><em>Photo: <a href=\"http:\/\/en.wikipedia.org\/wiki\/Greek_drachma\">Drachmas<\/a><\/em><\/span><\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/heres-why-its-impossible-for-greece-to-back-out-of-the-euro-2010-2#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/niall-ferguson-us-finances-are-not-much-better-than-those-of-greece-2010-2\">Niall Ferguson: The Next Greece? It&#8217;s The US!<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/goldman-if-they-get-greece-wrong-all-of-southern-europe-will-fall-like-dominos-and-30-of-euro-gdp-would-be-at-risk-2010-2\">Goldman: If Greece Is Handled Wrong, All Of Southern Europe Will Fall Like Dominos And 30% Of Euro GDP Would Be At Risk<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/pimco-california-bond-spreads-about-explode-just-like-greece-2010-2\">Pimco: Forget Greece, California Bond Spreads Have Soared Back To Crisis Levels<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/rkXpWNzX1Q4\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>From Marginal Revolution: Talk of Euro abandonment would trigger an immediate run on Greek banks, sending the country into an even deeper hole.&nbsp; Who wants a Euro deposit to be converted into a drachma deposit? You could imagine keeping current Euro-denominated deposits and adding new drachmas to the system, circulating at a flexible exchange rate.&nbsp; [&hellip;]<\/p>\n","protected":false},"author":5448,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-293277","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/293277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/5448"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=293277"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/293277\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=293277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=293277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=293277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}