jump to navigation

Greece Seeks Second Rescue, Fights to Stay in Euro February 3, 2012

Posted by proeconomia in Fiscal policy, Main, News on Greece, On the crisis, Opinion.

Lots of fun! Here is an article from Bloomberg with very interesting quotations! Here you go:

“The current Greek adjustment program is failing (says Holger Schmieding of Berenberg Bank in London). Excessive austerity, a lack of supply-side reforms, administrative incompetence and political deadlock have pushed the Greek economy into an apparent death spiral. More of the same will not work.” – Note the words excessive austerity (enough on the demand side), supply-side reforms (nothing done for closed markets, professions and high prices), incompetence (no comment here) and political deadlock (wonder who suits that)….Also, from the same person “Greece’s ability to stay in the euro is “very open to question” and that the euro area and IMF need to focus less on austerity and more on improvements to the business environment. Greece, he said, needs a simple flat tax, cuts in red tape and more deregulation.”

and then a quote from Paul Krugman,

“Greece will default on its debt and is likely to leave the euro, Nobel economics laureate Paul Krugman said yesterday at a conference in Moscow.
“The Greek situation is essentially impossible,” Krugman said. “They will default on their debt. In fact they already have. The question is whether they will also leave the euro, which I think at this point is more likely than not.””



No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: