R. Götz, Martin, Haselmann, Rainer, Krahnen, Jan Pieter, Steffen, Sascha, (2015), “Emergency liquidity assistance and Greek banks’ bankruptcy”, Voxeu publications, 25 September Discussions continue in some circles as to whether the ECB’s emergency liquidity assistance for Greek banks is legitimate. This column assesses the underlying economics of the emergency liquidity assistance programme and the complex interrelationship between the EU, the ECB and the Greek banks. Economists must focus on the political economy of a monetary union with …Read More

Krugman, Paul, (2015), “Poland Versus Greece”, New York Times blog, 11 September Yannis Ioannides and Christopher Pissarides, in a new Brookings Paper, talk about the ways lack of structural reform hurts Greek productivity and competitiveness. I have no reason to doubt that there are big things that should change, and that Greece would be much better off if it could somehow break the political barriers to making these changes. Relevant …Read More

Papantoniou, Yannos, (2015), “A New Chance for Greece”, Project Syndicate, 9 Σεπτεμβρίου On September 20, Greek voters will go to the polls – yet again – in a snap election called by Prime Minister Alexis Tsipras. The early poll was no surprise: almost a third of Tsipras’s colleagues in his leftist Syriza Party refused to endorse the bailout he had negotiated with the country’s creditors. In a parliamentary vote on …Read More

Phelps, Edmund, (2015), “The Foundations of Greece’s Failed Economy”, Project Syndicate, 4 September Too many politicians and economists blame austerity – urged by Greece’s creditors – for the collapse of the Greek economy. But the data show neither marked austerity by historical standards nor government cutbacks severe enough to explain the huge job losses. What the data do show are economic ills rooted in the values and beliefs of Greek …Read More

Odendahl, Christian, (2015), “Lighten the load”, Centre for European Reform, 26 Αυgust The IMF says that Greece’s debt burden is unsustainable. That is why the IMF will not contribute to the third assistance package (recently agreed by Europe and Greece) unless Greek debt is reduced. The problem is that an outright cut in the value of the debt – a haircut – is politically unacceptable, especially to Germany. The other option …Read More

Barslund, Mikkel, Barnebeck Andersen, Thomas, (2015), “Greece’s poor growth prospects”, Ceps publications, 21 Αυgust Four years ago – almost to the day – when the question of Greece’s debt sustainability was the subject of intense debate, we argued that Greece would face strong headwinds in its effort to ‘grow solvent’ (Gros, Barnebeck & Barslund, 2011). With the third rescue package dealing with the immediate liquidity issues in the works, and concerns being voiced by the IMF …Read More

Cline, William, (2015), “Back from the brink: Policy reform and debt relief in Greece”, Voxeu, 24 Αυgust Economists continue to debate whether – and to what extent – Greek debts should be relieved. This column takes through the details of Greek debt, what relief options are open to Greece, and what the likely consequences of relief might be for all parties. Yet again, there are no easy choices – but that …Read More

Subramanian, Arvind, (2015), “How the IMF Failed Greece”, Project Syndicate, 13 August Democracy is about real choices. But, throughout their country’s crisis, the Greek people have been deprived of them. For this, the Europe Union and especially the International Monetary Fund bear considerable responsibility. Greece was offered two stark choices: Leave the eurozone without financing, or remain and receive support at the price of further austerity. But Greece should have been …Read More

Consiglio, Andrea, Zenios, Stavros, (2015), “Greek debt sustainability: The devil is in the tails”, Voxeu, 12 August Some experts view Greek debt as sustainable, while others claim it is not sustainable. This column argues that the distinction between tactical and strategic debt sustainability can explain this difference of opinions. Moreover, strategic debt sustainability analysis should account for tail risk. This approach shows that Greek debt is highly unsustainable, but sustainability can be restored …Read More