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Jenkins Says Greek Default in Euro Better, Financial News Says

Bank of England interim Financial Policy Committee member Robert Jenkins said Greece must default on its debt within the euro area as a default outside the monetary union may cause bank lending to slump and damage Europe’s economy.

A “Greek default within the euro is manageable and will be managed,” Jenkins, also an adjunct professor of finance at the London Business School, wrote in an article published on the website of the Financial News today. “Greek default outside the euro involves risk to a different order of magnitude.”

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