Troika’s Solution For Greek Cat
For Greece, there are no easy options, they are damned if they do and damned if they don’t. Although in my opinion, accepting a deal with more austerity just kicks the reckoning down the road. Without its own currency and with it the ability to set its own monetary policy, it is hard to see how Greece can get out of its debt trap. Five years of punishing austerity have shrunk the economy, increased unemployment. It is hard to see how this policy is good for the creditors either if they want their loans to be paid off. Or do they want to make an example of Greece so that the other indebted nations in the Eurozone like Italy don’t dare follow Greece’s example.
Greek Kitteh stands up to the Austerity Cat
LoL by: two_kittehs
Austerity Cat is looking out for you
LoL by: two_kittehs (Picture by: Deebrio)
Austerity policies during a recession make matters worse, not better. A lesson that the world learnt in the aftermath of the Great Depression but seems to have forgotten in this century. What ails the global economy is the lack of demand, which the austerity policies have only exacerbated, take it away,Prof. Stiglitz.
With the recent elections in Greece, finally, someone with real political power is standing up to the conventional wisdom that austerity is good for the economy. You can keep track of their progress, on the Greek finance minister’s blog. I wish the new the Greek government all the luck, they are going to need it while navigating the shoals of the economy, including the debt and massive unemployment.