Near-Term Greek Exit 'Severe To Catastrophic' -TD

The TD economics team's base-case assumption is that the Greek election will lead to a government that sticks to an EU/IMF program. But Greece needs more restructuring of its debt and will "ultimately" exit the euro, although Europe isn't ready for this to happen imminently. "If an accident does occur and Greece does leave the euro in the near term, it would have global financial ramifications that could range from severe to catastrophic," TD says. Severity will depend on how far European governments are willing to allow the ECB to contain the shock at first, but, ultimately, the governments will have to act boldly to save the monetary union, it says.

Near-Term Greek Exit 'Severe To Catastrophic' -TD

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