ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Rania AntonopoulosSubscribe to Rania Antonopoulos

Economic Turbulence in Greece

The current approaches to the Greek and eurozone crises that are being pushed by Germany, France and the European Union are failing because they suffer from a fatal misdiagnosis. The central problem is not profligate spending in the periphery, but the very set-up of the European Monetary Union. Without attending to current account imbalances within the eurozone, austerity will be self-defeating. Deflation and depressed growth will heighten the debt problem while continuing to ignite social ruin. The eu must become an entity with a unified and expanded fiscal policy and a central bank willing and able to act as lender of last resort. If austerity and structural reform continue to be the only options, Greece will bear witness to a lost generation and a likely end to the euro project in its present form.
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