When Countries Fail: what it Means for Greece and the Rest of the World

Abstract

In Greece, the adoption and conversion to Euro means a revaluation of their own currency which makes the currency dearer relative to other currencies. As a result import demand rises and country's export gets lowered, directly leading to a fall in the Country's external balance. The 19 member nations unanimously reached an agreement on a new programme for Greece under the eurozone bailout fund, necessary to avoid another financial collapse and ejection of the country from the single currency bloc.