Paul Krugman: Debt deflation in Greece [Chart]

However things play out from here — I find it hard to see a path other than Grexit — the troika’s program for Greece represents one of history’s epic policy failures. […]

What this suggests is that the troika program was simply infeasible, and would have been infeasible no matter how willing the Greeks had been to make sacrifices. The more they cut, the worse things got, because of Fisherian debt deflation. […]

If Greece had received major debt forgiveness, it would still have gone through hell, but with at least some hint of an eventual exit. Instead it was pushed into a cycle of ever-worse pain without hope.“

http://krugman.blogs.nytimes.com/2015/07/07/debt-deflation-in-greece

Advertisements

Kommentar verfassen

Trage deine Daten unten ein oder klicke ein Icon um dich einzuloggen:

WordPress.com-Logo

Du kommentierst mit Deinem WordPress.com-Konto. Abmelden / Ändern )

Twitter-Bild

Du kommentierst mit Deinem Twitter-Konto. Abmelden / Ändern )

Facebook-Foto

Du kommentierst mit Deinem Facebook-Konto. Abmelden / Ändern )

Google+ Foto

Du kommentierst mit Deinem Google+-Konto. Abmelden / Ändern )

Verbinde mit %s