Greece should exit euro to save economy, says Ifo head

By Steven C. Johnson







Greece's ability to recover competitive economic standing will be severely constrained if it continues to use the euro, and other indebted eurozone countries will likely face similar struggles, the head of Germany's prominent Ifo economics institute said on Monday.

"I personally believe there's no chance for Greece to become competitive (while) in the eurozone,» Hans-Werner Sinn, president of Ifo, said in a luncheon speech in New York.

"If Greece is kept in the eurozone, there will be ongoing mass unemployment. But if they exit, they will see a very sudden recovery,» he said, as lower prices boost competitiveness.

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