Tuesday, January 13, 2015

ECB’s Nowotny Warns of Contagion Effects of Greek Exit From Eurozone

Wall Street Journal
January 13, 2015

Greece’s exit from the eurozone would have unknown contagion effects on the other members of the currency union, said Ewald Notwotny, a member of the European Central Bank Governing Council.

The devaluation that would follow an exit would also likely cause prices to rise in Greece, as exports wouldn’t pick up as quickly as prices for imports would increase, he added.

Mr. Nowotny’s comments Tuesday come as Greece heads into elections at the end of the month, with the leftist Syriza party ahead in polls.

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