A Greek default will be messy. The big problem is how to convert Greek euros back into drachmas? The most likely way to do this is to firstly limit withdrawals to 250 euros per week, then close Greek banks for a week to make the currency switch. After the switch, in terms of euros, Greek accounts are worth 40% less and workers get paid 40% less. Government charges and local produce would cost the same. Imports would cost 40% more. Greek workers will cost 40% less to employ than euro zone workers. Expect a run on Greek banks any day now.
