Leaked memo: Seven years of demanding the impossible in Greece

Hello. It’s been some time.

“According to [IMF’s then head of research Olivier] Blanchard, not only was the task unprecedented, but Greece was being asked to achieve the impossible in unfavourable external circumstances, when everyone was barely recovering from the 2008 global financial crisis and without any other policy levers (low interest rates or exchange rate adjustment). […]

Athens is currently under pressure to adopt another 2 percent of GDP in new fiscal measures, which relate to the tax-free threshold and pension spending. Since 2010, Greece has adopted revenue-raising measures and spending cuts that are equivalent to more than a third of its economy and more than double what Blanchard had described as unprecedented almost seven years ago.”

http://www.macropolis.gr/?i=portal.en.the-agora.5256