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Why the Greek Deal Will Work

Kaletsly, Anatole, (2015), “Why the Greek Deal Will Work”, Project Syndicate, 22 July Now that Greek banks have reopened and the government has made scheduled payments to the European Central Bank and the International Monetary Fund, does Greece’s near-death experience mark the end of the euro crisis? The conventional answer is a clear no.According to most economists and political commentators, the latest Greek bailout was little more than an analgesic. …Read More

Syriza Was In A Lose-Lose Situation

Galbraith, James K, (2015), “Syriza Was In A Lose-Lose Situation”, Social Europe Journal, 17 July As a friend of – and advisor to – former Greek finance minister Yanis Varoufakis, James K. Galbraith has followed the negotiations up close from the start. Here he talks to Thomas Fazi about the latest bailout deal, the Greek government’s negotiating strategy and the lessons of the Greek tragedy for the European left.   …Read More

Germany and Greece: In Victory, Magnanimity?

Funk Kirkegaard, Jacob, (2015), “Germany and Greece: In Victory, Magnanimity?”, Real Time Economic Issues Watch, Peterson Institute for International Economics, 14 July The agreement between Greece and its international creditors announced on Monday represents a predictable capitulation by the Greek government from a position advanced for weeks by Prime Minister Alexis Tsipras. Faced with the dire repercussions of an exit from euro area institutions—including a collapse of its banking system …Read More

Greece should prepare for Grexit and then not do it

Wyplosz, Charles, (2015), “Greece should prepare for Grexit and then not do it”, Voxeu, 20 July There is a high likelihood that Grexit will be back on the table. This column argues that Greece can strengthen its negotiating position if it is prepared for exit. Grexit remains a disastrous choice, but it has become the default option for Greece and its creditors. However, preparing for Grexit does not mean leaving the …Read More

Why debt sustains corruption in Greece and vice versa

Koulovatianos, Christos, Tsoukalas,  John, (2015), “Why debt sustains corruption in Greece and vice versa”, Voxeu, 20 July As numerous Greek MEPs opposed the Eurozone summit deal, implementation will require a broad coalition of political parties. This column argues that corruption in Greek politics will prevent the formation of such a coalition. The heavy debt service leads parties to invent extreme ways of responding to super-austerity and to strongly oppose direct reforms that …Read More

Greek Theme Park ‘Dettoland’: A Modest Anti-crisis Proposal

Rossman, Peter, (2015), “Greek Theme Park ‘Dettoland’: A Modest Anti-crisis Proposal”, Social Europe Journal, 20 July Where there’s a will there’s a way, Chancellor Merkel reminds us. Now that the IMF has revisited the numbers and (again) come up with the unsurprising conclusion that Greek debt is hugely unsustainable, it’s time to revisit the proposal for a Greek asset fund. Like the debt sustainability figures based on growth and budget …Read More

Ireland And Greece

Wren Lewis, Simon, (2015), “Ireland And Greece”, Social Europe Journal, 20 July Ireland is often regarded as a success story for Eurozone austerity, compared to the total failure of Greece. That can lead to nonsense like this: instead of whingeing, the Greeks should buckle under and get on with it as Ireland has done. An alternative narrative is to explain the different experience of the two economies by looking at structural …Read More

One Thing Europe Got Right in Greece’s Crisis

Gilbert, Mark, (2015), “One Thing Europe Got Right in Greece’s Crisis”, Bloomberg View, 16 July Greece’s slow-motion economic car crash is an ongoing debacle, but Europe’s success at ring-fencing the disaster has been remarkable. Judging from the currency market, the threat of contagion in Europe has steadily diminished month by month since March.Here’s a chart showing the monthly swings in the euro’s value against the dollar this year. Those trading ranges have …Read More

Greece: And the can keeps on rolling…

Beck, Thorsten, (2015), “Greece: And the can keeps on rolling…”, Voxeu, 15 July Monday’s deal was a political compromise consistent with the political constraints of Greece and its creditors. It is doubtful, however, that it will provide a long-term solution to Greece’s economic crisis. At a minimum, the momentum should be used to eliminate the option of Grexit once and for all. The bank-sovereign ties should be cut to turn …Read More

Greece: Past Critiques and the Path Forward

Blanchard, Olivier, (2015), “Greece: Past Critiques and the Path Forward”, IMF Direct, 9 July All eyes are on Greece, as the parties involved continue to strive for a lasting deal, spurring vigorous debate and some sharp criticisms, including of the IMF.In this context, I thought some reflections on the main critiques could help clarify some key points of contention as well as shine a light on a possible way forward. …Read More