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Why Greece is a Model of Economic Mismanagement
By Delusional Economics, who is determined to cleanse
the daily flow of vested interests propaganda to produce a balanced
counterpoint. Cross posted from MacroBusiness.
I note that we still haven’t heard from the Euro group meeting about what the exact plan is for Greece. As I said, my expectations are that a ‘deal’ will be stitched together at the last minute to ‘kick the can’ further down the road because I can’t see northern creditors having the political will to admit to their own taxpayers that real losses are inevitable at this time. The big question is whether the IMF is going to accept whatever the ‘deal’ ends up being. But if they are going to stick to their policy that the program needs to credibly deliver a government debt to GDP of 120% by 2020 it hard to see how they can.
Today I thought it was timely to have another look at the Greek economy from a sectoral balance perspective which will hopefully provide some clarity on exactly what we are seeing in Greece, but just as importantly also provide some broader context to the likely outcomes for other Eurozone periphery nations with similar economic dynamics.
Read more at http://www.nakedcapitalism.com/2012/11/why-greece-is-a-model-of-economic-mismanagement.html#pcCLAo4ei8zQfjwA.99 I note that we still haven’t heard from the Euro group meeting about what the exact plan is for Greece. As I said, my expectations are that a ‘deal’ will be stitched together at the last minute to ‘kick the can’ further down the road because I can’t see northern creditors having the political will to admit to their own taxpayers that real losses are inevitable at this time. The big question is whether the IMF is going to accept whatever the ‘deal’ ends up being. But if they are going to stick to their policy that the program needs to credibly deliver a government debt to GDP of 120% by 2020 it hard to see how they can.
Today I thought it was timely to have another look at the Greek economy from a sectoral balance perspective which will hopefully provide some clarity on exactly what we are seeing in Greece, but just as importantly also provide some broader context to the likely outcomes for other Eurozone periphery nations with similar economic dynamics.
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