Dimitri B. Papadimitriou — Debt: Do the Right Thing

Debts that cannot be repaid won't be.

Millions of Americans have learned that there are times when demands for full repayment are both cruel and infeasible, and that a broader solution is necessary for both the individual and the surrounding community. In Greece, any meaningful change in debt terms needs to be part of a wider plan that deals with the underlying structural imbalances of the eurozone, just as a comprehensive plan was necessary for post-World War II European prosperity. 

In the aftermath of that war, Germany was the beneficiary of the largest debt restructuring deal in history. Today, German leaders have positioned themselves as the moral gatekeepers of justice in Europe, with a firm stance against any debt forgiveness. Of course, debt cancellation after WWII was one of the primary drivers of the German so-called "economic miracle." 

A solution for Greece and the eurozone doesn't require miraculous intervention. All that's needed is for Europe to reset its moral compass to do the right thing, beginning with a rethink on the complexities of justice.

The Huffington Post
Greek Debt: Do the Right Thing
Dimitri B. Papadimitriou | President, Levy Economics Institute of Bard College