Chloe - there are a lot of "ifs" so any answer would be mostly opinion. I believe most investors would be more concerned about the potential domino effect on the European Union should Greece somehow leave whether completely or by dropping the Euro currency. The potential economic disruption caused by the dissolution of the union, or of the currency, resulting from other countries following Greece would likely have serious short-term negative consequences for the financial markets.
Regardless of where one places responsibility for the situation in Greece, Greece can’t inflate its way out of the current economic problem since it is tied to the EURO. Even though it may be difficult for Europeans to fathom a partial (if not total) decoupling of the common currency, it seems like this may be the only answer for Greece.
There is a depression in Greece. People are suffering. If they had their own currency they would at least have a chance of inflating their way out of the problem over the next several years.
By being able to devalue their currency, Greeks would find it expensive to spend their money outside of Greece. On the other hand for foreign purchasers of Greek goods and services, or for investors, or for tourists, Greece would likely become a bargain. This is a radical solution but it seems to come closer to fruition every day.
John is spot on! As far as my two cents; no matter how hard Greece tries they are not going to bring down the world economy!