Greece and the euro: Hitting the ground running—backwards | The Economist

IMF Headquarters, Washington, DC.

IMF Headquarters, Washington, DC. (Photo credit: Wikipedia)

This is an excellent, lead-article from the Economist. Check it out!

via Greece and the euro: Hitting the ground running—backwards | The Economist.

I particularly liked the following suggestion from the Economist.

These terms could be made more generous still. And the creditors should be prepared to adopt a version of the IMF’s old highly indebted poor countries (HIPC) initiative for Africa: a promise to write down debt in stages at indeterminate future dates, but only in return for defined progress on reforms.

Concessions are probably appropriate from both sides. But the creditors are right – unless Greece reforms her economy, the decline will continue for Greece.

I think that the HIPC approach is appropriate to Greece – the leading emphasis should be on reform, followed by progressive debt write.

Thoughts?

A Greek Morality Tale by Joseph E. Stiglitz – Project Syndicate

This is an outstanding, must-read article from Nobel prize winning economist, Joseph Stiglitz, published by Project Syndicate.

via A Greek Morality Tale by Joseph E. Stiglitz – Project Syndicate.

This is an easy to read analysis that clearly blames the troika for Greece‘s current financial crisis.

Interesting, Stiglitz argues for reform of the Eurozone itself, rather than structural reform in Southern European countries, like Greece etc. This is very different to the official view coming from Germany.

Thoughts?

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