As capital is withdrawn, refinancing becomes dearer, on top of which currency depreciation makes those loans more expensive to service.

The economic turmoil that would be inflicted on Greece could be horrendous, as a huge currency depreciation could prompt bank collapses.

Therefore it makes sense to aim for currency depreciation.

A sharp currency depreciation can work both by increasing the price competitiveness of British exports and by encouraging domestic consumers to switch their spending away from imports.

But for the overall health of the economy the definitive answer is this: sometimes a currency depreciation is beneficial and sometimes it isn't.