A super paper on the topic. Greece may be in real bad shape but its central bank econs have some decent papers on many aspects of Greece and Eurozone economies.
The origins of the Greek-sovereign debt crisis were the country’s large fiscal and external imbalances. The key factor that abetted those imbalances was the absence of a short-tomedium term adjustment mechanism — due to perceptions of sovereign bailouts — in the euro-area that would have reduced members’ external imbalances. This situation contrasts sharply with the adjustment mechanism under the classical gold standard. Under the gold standard, countries with external deficits would experience losses of gold reserves, higher interest rates, lower money and credit growth, and reductions in wages and prices, which helped restore trade competitiveness. We draw two main conclusions. First, the durability of a monetary union is crucially dependent on the existence of a wellfunctioning adjustment mechanism. Second, adherence…
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Utopia, you are standing in it! 
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