History Shows a Currency Breakup Isn't a Disaster

Investors, economists and commentators have spent a lot of time agonizing over the prospect of a Greek exit from the euro, and not without justification.

But the chart below from Adam Slater, lead economist at Oxford Economics, underscores the fact that currency breakups themselves are far from rare events and that, in most cases, the exit hasn’t been followed by a cataclysmic drop in output.