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
Ruparel, Raoul, (2015), “Bridge financing for Greece – what are the options and should the UK be involved?”, Open Europe blog, 14 July We discussed this briefly on our blog yesterday but a few more options/ideas have emerged since then to raise the €7bn to €12bn which Greece needs immediately. Importantly, as Eurogroup Chief Jeroen Dijsselbloem said this morning, all options come with “disadvantages, impossibilities and legal objections”. Relevant Posts …Read More
Mody, Ashoka, (20150, “Professor Blanchard Writes a Greek Tragedy”, Bruegel publications, 14 July Olivier Blanchard has, with his customary clarity and candor, addressed criticisms of the IMF’s role in Greece’s financial rescue. His is a personal statement. But in writing it, he also presents the IMF’s operating philosophy and mandate. Blanchard’s statement will, therefore, not only shape our thinking on the evolution of the Greek crisis but it could define …Read More
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
Gros, Daniel, (2015), “Europe’s Greek Failure”, Project Syndicate, 9 July Narratives matter, especially when they are intertwined with hard interests. As Greece and its creditors court catastrophe, we are getting a clear picture of how conflicting narratives can lead to a lose-lose result. The facts are indisputable. In early 2010, when the Greek government could no longer finance itself, it turned to its European partners and the International Monetary Fund …Read More
(2015), “Joseph E. Stiglitz: The U.S. Must Save Greece”, Time Journal, 9 Ιουλίου As the Greek saga continues, many have marveled at Germany’s chutzpah. It received, in real terms, the largest bailout and debt reduction in history andunconditional aid from the U.S. in the Marshall Plan. And yet it refuses even to discuss debt relief. Many, too, have marveled at how Germany has done so well in the propaganda game, …Read More
Fazi, Thomas, (2015), “A Few Clarifications About Greece And ELA”, Social Europe Journal, 8 July A good part of the media (most notably in Germany) is framing the ECB’s emergency liquidity operations in Greece as ‘the ECB extending credits to Greek banks’. This is a huge misrepresentation of reality. The ECB is actually doing little more than what all central banks do (and, moreover, what it is legally bound to …Read More
Bulow, J. & Rogoff, K., (2015), “Why sovereigns repay debts to external creditors and why it matters”, Voxeu, 10 June. With Greece on the edge and Argentina confronting adverse legal decisions, thinking about sovereign default is a front-burner issue. This column discusses how recent experience casts light on relative merits of the two main conceptual approaches to modelling sovereign lending and default – the reputation approach and the punishment approach. …Read More
Bulow, J. & Rogoff, K., (2015), “The modern Greek tragedy”, Voxeu, 10 Ιουνίου. The conventional wisdom in Greece is that the nation has suffered years of excessive, Troika-imposed austerity in a short-sighted effort to extract maximum repayment. This column argues that, in fact, Greece was a net receiver of Troika funds from 2010 to mid-2014, with a modest reverse flow since Greece stalled on its reforms. Both sides have negotiated …Read More
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 …Read More
