A triumph of democracy over the creditors, say some.
Actually, it's more of a triumph of economics over financial journalism.
Curiously, a number of Nobel prize winning economists supported the NO vote, Krugman, Stiglitz, etc.
But the financial press, closely identified with the big creditor countries. were consistently in support of the YES vote.
A victory for the students of international economics and finance, not to mention economic history and the reality of the unsustainable divergence in the Eurozone. And the the other Eurozone countries, including Portugal, who participated in the bailouts one and two, should simply recognize they served the function of the "greater fool", a time tested last-in creditor role in credit workout negotiations.
Contrary to what many political commentators said, what is at stake is, in fact, the EURO.
The referendum will not save Greece from further austerity. They need to overcome decades-old structural problems and bad economic management. The Greek economy will get ever more fragile, but perhaps they will get more humanitarian aid, and especially help in putting the 50% of unemployed youth to work.
If DIVERGENCE within the Eurozone continues to worsen, popular support for the Euro will drop in other small countries as well, as they come to the realization they might be better outside the Eurozone than in.
Mariana Abrantes de Sousa
PPP Lusofonia
See more in http://ppplusofonia.blogspot.pt/2015/06/economically-insignificant-countries.html
Look beyond Greece, and the threat of further conflict within the euro is all but inevitable.
ResponderEliminarmall countries have a distinctive outlook on macroeconomic affairs. Fiscal stimulus doesn't work very well because you are so engaged in international trade that there is massive "leakage" across borders. Similarly, monetary policy has its effect largely through exchange rates and international trade rather than domestic investment. And because you are small, your domestic economic policies don't have a big impact on the global economy. Because you are small, your foreign policy lacks grand ambitions and largely exists as an extension of economic growth policy.
ResponderEliminarNos países pequenos e frágeis, quanto é que estamos dispostos a "aguentar" ou a sacrificar para fazer parte da Moeda Única se as suas regras desse "clube" não nos servem ?
ResponderEliminar
ResponderEliminarO credor que nunca fez um empréstimo subprime, que atire a primeira pedra.
Economically insignificant country steamrolled
ResponderEliminar