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Greece should prepare for Grexit - and then not do it

A credible threat point may deliver a better outcome for both the nation and its creditors.

Exiting the eurozone is considerably more complicated than a devaluation, and many things have to be done to reap the benefits of the regime change.

IN strategic games, threat points determine the outcome. In the negotiations between Greece and its creditors, the threat point was always Grexit. The Greeks could walk out, leaving a hefty bill behind. The creditors could cut the flow of cash. But, of course, threat points must be credible, and...