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