Tuesday, September 22, 2015

Ioanna Zikakou — Stiglitz: ‘Germany is Responsible for the Chaos in Greece’

Economy Nobel prize winner Joseph Stiglitz criticized once again the austerity policies imposed on Greece by Germany and the Eurozone, saying that “Germany is responsible for the chaos.”
In an interview with the German newspaper Tagesspiegel, Stiglitz estimated that Greece’s financial problems have not been solved after the agreement on the third bailout. “The problem has been transferred to the future. We must wait to see what will happen after the elections, if there will be a coalition that will be able to break the old system of oligarchs. The troika has so far not helped much in this direction,” the American economist underlined…
Stiglitz concluded that the austerity policy that Germany promotes “is a dangerous policy.”

2 comments:

Matt Franko said...

iirc his 'solution' is to write down the debt and proceed as usual...

This would be like witnessing a bridge collapse and saying "just put it back the way it was..."

Neil Wilson said...

Stilgitz, Krugman, etc. are all Wicksellians at heart. They read the tea leaves looking for the 'natural rate'.