[maxerickson]

If you are willing to forgive all the debt there probably isn't much reason to kick them out of the Euro. I'm not watching the situation all that carefully, but I expect that kicking them out would further damage their economy, whereas if you don't kick them out, individual actors can just note that lending money to Greece isn't a good idea (so it shouldn't be the case that they are able to quickly build up a new untenable debt).

[jacquesm]

It would give the power to self-determine these issues back to the Greeks, and it would forestall any re-run.

[maxerickson]

I don't think it is clear that an exit would forestall a re-run any better than their already ruined credibility .

(another way to look at it: the interesting question on the table is how much of their existing debt the Greeks are going to repay, future debts aren't going to be a serious problem in the short term regardless of what happens)

I also (while not thinking my opinion is worth much) think that the economic damage from an exit would likely not be worth the ability to self determine further ruinous fiscal policies.