Generate text that refutes this claim: Defaulting would be the quickest route to economic recovery  Under the status quo, the Greek economy is only headed in one direction: deeper recession. There are no signs of the situation changing any time soon. Were the Greek Government to default on its debts, after a period of recession, conditions would quickly be favourable for economic growth once more. This is what was observed when Argentina and other nations [1] recently defaulted and can be explained by many factors. Firstly, defaulting and exiting the Eurozone would allow Greece to conduct monetary policy more freely: they would be able to quickly devalue their currency in order to make Greek goods and services more competitive on the international market. This would increase exports and attract investment, as well as tourists looking for cheaper holidays – all of which would contribute towards the rebuilding of the Greek economy. [2] Moreover, were Greece to default, it would put an end to the huge degree of unpredictability and uncertainty about the Greek economy. At the moment, nobody knows if the banks are safe, if the government will default etc. The constant chopping and changing of current austerity measures such as increases in varieties of corporate tax and changes in regulations also contribute to the huge degree of uncertainty in the Greek economy. Uncertainty breeds risk and risk breeds fear: a recipe that drives away foreign investors and makes it difficult for local businesses to start up. Were Greece to default, however, such elements of uncertainty would be seriously diminished, and conditions would be ripe for investment from abroad and locally. Greek would be able to start afresh.  [1] Pettifor, Ann: “Greece: The upside of default”, 23 May 2012, BBC News,   [2] Lapavitsas, Costas: “Eurozone crisis: what if… Greece leaves the single currency”, 14 May 2012, The Guardian,
conomic policy eurozone crisis finance international europe politics government
The proposition vastly understates the negative impact a default has on the local economy. It is unrealistic to compare Greece with Argentina. As a member of the Eurozone, the developments within the Greek debt crisis have a huge impact on nations suffering from similar problems, as well as the Eurozone as a whole. Moreover, devaluing the Drachma would be nowhere near as beneficial as the proposition suggests. Greece is not rich in natural resources or industry and so boosting exports will not make a huge difference.  Yes, a default would resolve the uncertainty about whether Greece will default and exit the Euro. However this new predictability would not be good; it would simply show investors that they cannot invest in Greece because they will lose their money. Ratings agencies are unlikely to consider Greece a safe investment for a long time so there will not be international investment.[1]  [1] Pappa, Eppi: “Q&amp;A: What happens if Greece leaves the euro?”, 14 May 2012, Al Jazeera,