Nobel laureate Pissarides: Grexit means biggest ‘haircut’ of wages… ever

His primaary reasoning: Most products consumed in Greece are imported, and their prices would remain in euros

Grexit will lead to the biggest “haircut” of wages in Greece’s history, was the stern warning issued on Wednesday by Nobel Prize-winning economist Christopher A. Pissarides.

In comments that will probably generate howls of “neo-liberal” by detractors, the distinguished UK-based academic and ethnic Cypriot also said that a SYRIZA government proposal to raise the minimum monthly wage in the recession-plagued country will lead to an increase in unemployment.

He projected that Grexit, or its derivities of “Grexident”, “Grexodus” etc., could result in up to a 60 percent cut in wages.

“Grexit now would be a huge mistake. It would mean the biggest haircut of wages ever, because most products that we consume in Greece are imported, and their prices will be in euros.”