The recent debt crisis in the EU has revived interest in the costs and benefits of membership in a currency union for a country like Greece, as well as in the implications of such memberships for union-wide performance. This article utilizes insights from the voluminous literature on monetary unions to address a set of questions concerning Greece and the Euro. It argues that: (a) It made good economic sense for Greece to join EMU in order to enjoy a lower and more stable rate of inflation, (b) It was not unwise for the core countries to let Greece in, (c) The cost of Greece exiting the Euro would be substantial without any countervailing -even small- benefits, (d) contrary to popular beliefs, the Greek sovereign debt crisis does not by itself pose a substantial threat to the Euro. Whatever threat exists, it comes from inappropriate policy response by the ECB and leading EE countries.
This article has been written by Harris Dellas. The full article here.
http://klauskastner.blogspot.com/2011/09/argentina-possible-example-for-greece.html