A Game of Chicken – Paul Krugman – NYTimes.com

Paul Krugman, Laureate of the Sveriges Riksban...

Paul Krugman, Laureate of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2008 at a press conference at the Royal Swedish Academy of Sciences in Stockholm (Photo credit: Wikipedia)

This is currently the third-most-read article in the NYT – it’s by Nobel prize winning, liberal, economist, Paul Krugman. It’s a recommended read. Check it out!

via A Game of Chicken – NYTimes.com.

Krugman maintains that German politicians are not telling German voters about the risks. Let me give you a flavor:

And what if the Germans don’t wake up? In that case we can hope that the central bank takes a stand and declares that its proper role is to do all it can to safeguard Europe’s economy and democratic institutions — not to act as Germany’s debt collector.

I’m hoping for a compromise but fear that it will go to the wire. When two big countries play ‘chicken’, there’s a strong chance of causing serious damage and unintended consequences.

Perhaps Germany has pushed Greece too far, and it’s time for Germany to concede?

Thoughts?

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