Müller Andr., Storesletten K., Zilibotti F., (2015), “Pragmatism, the Greek crisis, and structural reforms: What theory says”, Voxeu, 27 May.
In the policy circles, there are confronting positions regarding Greece’s assistance programme and the structural reforms it should implement. This column argues that the best response is pragmatism and sequential compromise. Efficiency requires an assistance programme providing the country with debt relief with an intervention of an institution such as the IMF. Thus, misconceived economic principles could bring large welfare losses for Greece and renewed financial instability in the Eurozone.
Relevant posts
- Theodoropoulou, S. (2014) “Structural Reforms Will Not Mitigate The Risk Of Deflation In Europe“, Social Europe Journal, 10 November.
- De Grauwe, P. (2014) “Stop Structural Reforms and Start Public Investment in Europe“, Social Europe Journal, 17 September.
- Rubio, E. (2013) “Which financial instrument to facilitate structural reforms in the euro area?“, Notre Europe – Jacques Delors Institute, Policy Paper No.104, December.