The Greek crisis continues to take centre stage in policy debates. This column provides insight on the topic using evidence from three recent IMF studies. A suggested programme for Greece includes debt relief (debt equal to 50% of GDP and payable over 40 years), scaling down the banking system, and setting a flat 0.5% of GDP primary surplus over the next three years.VoxEU
A programme for Greece: Follow the IMF’s research
Ashoka Mody, Visiting Professor in International Economic Policy at the Woodrow Wilson School, Princeton University
2 comments:
This obsession with 'primary surplus' is depressing. Where is the spending going to come from in Greece to allow a boom sufficient to permit the repair of savings, the pay down of existing private debt and the payment to external creditors.
The payment of interest on government bonds is a welfare payment - a pension for foreigners. What the mainstream are saying at the moment is that Greece should pay pensions to foreigners who won't spend their Euros in Greece rather than pay pensioners in Greece who will spend their Euros at home.
It's totally illiterate.
Neil, it's not illiterate it is rent seeking.
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