M

ark Weisbrot kommenterar den senaste utvecklingen runt Grekland och krisen för Euron:

"The tens of thousands of Greeks in the streets have it right, and the EU economists have it wrong. You cannot shrink your way out of recession; you have to grow your way out, as the United States is doing (albeit too slowly).

If the EU/IMF will not offer a growth option to Greece, it would be better off leaving the Euro and renegotiating its debt. Argentina tried the "internal devaluation" strategy from mid-1998 to the end of 2001, suffering through a depression that pushed half the country into poverty. It then dropped its peg to the dollar and defaulted on its debt. The economy shrank for just one more quarter and then had a robust recovery, growing 63 percent over the next six years. (By contrast, the "internal devaluation" process promises not only indefinite recession but a long, very slow recovery if it "works" - as we can see from the IMF's projections for Latvia and Estonia. These countries are projected to take 8 or 9 years to reach their pre-recession levels of output.)"

Johan Ehrenberg skriver också en bra kommentar.