The production value of greece's indutry, is sadly currently very low. Similarily to Cuba, Greece has a few speciality products to export, and otherwise relies on tourism and a weakish tertiary sector. Cuba's productivity is nothing to be proud of.
In the case of default, the new government would have great difficulty obtaining new loans, and would have a meager revenue, thus making it impossible to promote the creation of new sectors, as would be necessary.
Equally, banks will run out of liquidities, following the usual mistrust of new currencies, making it more difficult for new entrepreneurs to find financement.
Even tourism could be temporarily hurt by the instability.
In such a situation, forcibly weekening the drachme would just create hyperinflation, further reducing buying power of the populace.
I do not see how greece could fare off much better than, let's say, mexico, after defaulting.
thoughts.
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