Category Archives: Macroeconomics

What is the best option for Greece? Stay the course? Declare bankruptcy? Leave the Euro?

Nicholas Economides evaluates the options available to Greece: (A) accept the new agreeement with the lenders, receive €130 billion, and implement the PSI; (B) declare bankruptcy within the eurozone; and (C) decrare bankruptcy and leave the eurozone. He argues that option … Continue reading

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Nicholas Economides interviewed on Bloomberg on the downgrade of Eurozone countries by S&P

S&P downgrades EU countries, Bloomberg TV interview January 13, 2012. In this interview, Nicholas Economides discusses the mass downgrade of EU countries by S&P. Although the countries’ downgrade was expected, the effect of the downgrade on the EFSF remains to … Continue reading

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Lets take the deal and reform: we can only gain from this

In two articles published in Kathimerini on 12 February 2012, (a) Costas Meghir and (b) Michael Haliassos, Yannis Ioannides and Dimitri Vayanos argue that the incentives for the Eurozone to bail out Greece are waning as Italy is being shored … Continue reading

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Greek Economists for Reform comment on Greece’s priorities for 2012

For its New Year’s edition, Kathimerini newspaper asked Greek Economists for Reform to propose specific actions that Greece should take in 2012 to improve its economy. Costas Azariadis and Yannis Ioannides urged Greeks to become more involved in civic society, … Continue reading

Posted in Banking and finance, Europe, Justice, Labour market, Macroeconomics, Press, Public finance, Public sector productivity | 1 Comment

Prodigal Italy, Greece, Spain? A Letter to Northern Partners

Michael Haliassos presents a key dilemma in the current debate regarding the future of the Euro: to prolong support of debt refinancing to countries in the periphery, so as to signal to markets that Euro membership is a one-way street; … Continue reading

Posted in Banking and finance, Europe, General, Labour market, Macroeconomics, Press, Public finance, Public sector productivity | 1 Comment

Euro versus Drachma: A Televised Debate

On December 12, 2011, the Greek TV station ‘SKAI’ broadcast a debate between seven Greek economists on whether Greece should stay with the Euro or switch to a new Drachma. The debate was aired a second time on December 15. … Continue reading

Posted in Banking and finance, Economic development, Europe, General, Macroeconomics, Product market, Public finance | 5 Comments

A Great Depression for Greece?

Costas Azariadis looks at the most recent “vital signs” of the Greek economy and argues that austerity measures without investment or market reform will not succeed in balancing the government budget. He finds that private economic activity has already dropped … Continue reading

Posted in Macroeconomics | 13 Comments

Greek wages and international competitiveness

Greece has had large external imbalances (current account, external official debt) because both  the  government and the households spent too much and saved too little; and  spending fell disproportionately on foreign goods as the domestic goods were too expensive.  This … Continue reading

Posted in Macroeconomics | 3 Comments

To Euro!

The article below, written by Yannis Ioannides and Chris Pissarides, is part of the ongoing discussion on this blog about the costs and benefits for Greece to continue being part of the Eurozone. The authors argue that Greece has a … Continue reading

Posted in Banking and finance, Europe, Macroeconomics, Public finance | 10 Comments

Feature: Greece and the Euro

The dramatic events of the past week have brought again into question Greece’s participation in the Eurozone. Will Greece manage to stay in the Eurozone or will it have to exit? Should Greece seek to exit? More generally, what are … Continue reading

Posted in Banking and finance, Europe, General, Macroeconomics | 2 Comments