Implications of a Greek exit over the longer-term? – BBH

FXStreet (Guatemala) – Analysts at Brown Brothers Harriman explained that the contagion that we think is more worrisome is of a longer-term nature.

Key Quotes:

“A Greek exit would once and for all signal that monetary union is not irreversible. Going forward, any crisis, and we have to assume there will be others, will potentially become an existential crisis. For example, if Podemos wins the national elections in Spain later this year, will it too leave the union if debt relief is not forthcoming? A Greek exit effectively turns the monetary union into a more rigid form of the European Exchange Rate Mechanism, as Martin Wolf of the Financial Times recently noted. “

Analysts at Brown Brothers Harriman explained that the contagion that we think is more worrisome is of a longer-term nature.

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