Foreign Exchange Market: Greece'S Return To Europe Has Great Damage.

An economist with a bow in the first place warned yesterday that if the new Greek government decided to leave the eurozone, it would cause financial turmoil and great harm, even more damaging than the collapse of the Lehman brothers that exploded the global financial crisis in 2008.

Yesterday, at the annual meeting of the AEA in the nonprofit sector, Barry Eichengreen, an economic historian at University of California at Berkeley, said that the withdrawal of Greece from the euro zone could trigger a run of Greek banks and shake the domestic stock market, which eventually led to strict capital controls by the Greek government.

Greece's exit will also have spillover effects, which will affect other countries, because investors will guess which country will exit next.

Eichengreen also compares the impact of Greece's withdrawal from the euro area: "in the short term, that will be the square of Lehman brothers."

Eichengreen predicts that

Politicians will have to make concessions again to make the necessary compromise for Greece to stay in the euro area.

"For politicians, although maintaining the euro zone solidarity is costly, difficult and painful, the split of the euro zone will be more costly and more difficult."

Overall, four well-known American economists attending the AEA meeting yesterday were pessimistic about the prospects of the euro area.

Jeffrey Frankel, an economics professor at Harvard University, believes that global investors are "returning to the European market" in recent years as the impact of the crisis is getting smaller and smaller.

Now the eurozone is likely to repeat the stage market turmoil, and spreads on European countries' bonds may expand sharply.

The former IMF chief economist, Harvard professor Kenneth Rogoff, said the euro was "a historic disaster", but "it does not mean that it is easy to fall apart."

Martin Feldstein, another economist at the meeting, said all attempts to restore Europe's healthy growth have failed.

"I think there may be no way to end the euro zone crisis," he said.

Feldstein advocates, guarantees

The best way to survive is to introduce tax incentives for all euro zone member countries to stimulate demand, such as alleviates in the next five years.

To increase consumption expenditure.

As the bottom chart of Oxford Economics, the economic forecast and modeling service, last week, the poll of Greek elections showed that the very left wing of Greece was far ahead of Syriza.

The party hopes to reverse the previous financial assistance provisions set by Greece and IMF and the European Union.

If Syriza is gaining momentum and the parties are no longer supporting Greece, the Greek market may be chaotic and banks will run out and will be forced to withdraw from the eurozone.