The Failed Project of Europe Jayati Ghosh

There is a stereotypical image of an abusive husband, who batters his wife and then beats her even more mercilessly if she dares to protest. It is self-evident that such violent behaviour reflects a failed relationship, one that is unlikely to be resolved through superficial bandaging of wounds. And it is usually stomach-churningly hard to watch such bullies in action, or even read about them. Much of the world has been watching the negotiations in Europe over the fate of Greece in the Eurozone with the same sickening sense of horror and disbelief, as leaders of Germany and some other…

A Greek Tragedy that could have been Avoided Jayati Ghosh

The endgame nears in Greece. The latest rejection by the Eurozone Finance Ministers of any extension of the proposed bailout plan was followed by the decision of the Greek Prime Minister Alexis Tsipras (subsequently supported by a majority vote in Parliament) to put the terms of the bailout to the Greek people in a referendum. Since that would put the country into technical default to the IMF by Tuesday 30 June, and a run on the banks was inevitable, by Monday 29 June Athens had been forced to impose a bank holiday and capital controls, at least until the proposed…

Averting a Greek Tragedy – For Now Jayati Ghosh

The citizens of Greece are not the only ones who have been watching the tense negotiations between the new government in Athens (led by the radical party Syriza) and the European Union (led de facto by the Germans).  Not just in Europe, but everywhere in the world, people are watching with bated breath this most recent skirmish, part of a battle in what may turn out to be a protracted war between democracy and finance. Because this current struggle is really about much more than whether Greece should  continue with its fiscal austerity programme or the contradictions of remaining within…

Responding to the Unemployment Challenge: A job guarantee proposal for Greece Rania Antonopoulos, Sofia Adam, Kijong Kim, Thomas Masterson, Dimitri B. Papadimitriou

This report, by the Levy Institute and INE-GSEE, presents research based evidence of the macroeconomic and employment effects of a large-scale direct job creation intervention. Unemployment_Challenge (Download the full text in PDF format)

The Continuing Crisis in Greece and Eurozone Dimitri B. Papadimitriou

The latest negotiations between Greece and its lenders are continuing with the latter insisting that the world’s preeminent deficit-reduction experiment continue unabetted despite its spectacular failure. The goal of a decrease in the debt to GDP ratio has shown to be pure fantasy as the recent level of over 170% testifies especially, if one considers that this ratio was about 125% at the onset of the crisis four years ago prior to any “rescue” support from the country’s lenders, and even after the word’s highest debt “haircut” in 2012. Greece maybe the hardest hit, but is not alone. The ratio…

In the Case of Sovereigns, Should Official Sector Debts be Subordinated to Private Sector Debts? Kunibert Raffer

The recovery process of the Euro crisis highlights the problem of official lenders like the IMF enforcing preference for their own loans, which is economically dangerous. Head_Head (Download the full text in PDF format) (This short article was first published in the July/August edition of International Financial Law Review [www.iflr.com] and is reproduced with this Journal’s kind permission. The copyright of this article is reserved by IFLR)

European Authorities Still Punishing Greece: Can they be stopped? Mark Weisbrot

Alexis Tsipras has a tough job.  He is leader of the Syriza Party of Greece, a left party that has risen meteorically in the past three years: from 4.6 percent of the vote in 2009 to 27 percent last June.  It is now the most popular party in the country and Tsipras could be the next Prime Minister. Unlike most of the eurozone’s leaders, he knows what is wrong with Greece and the eurozone, and so does his party: austerity.  “We have become the guinea pig for barbaric, violent neoliberal policies,” he said at a forum at Columbia University Law…

Insolvency Protection and Fairness for Greece: Implementing the Raffer Proposal Kunibert Raffer

The financial crisis in Greece and the 'austerity measures' being imposed on the country has lead to disastrous results for the economy. Contrary to mainstream prescriptions that seek to bailout big financial institutions at the expense of the real economy, an alternative proposal that was originally proposed by the author has gained much credence. The ''Raffer Proposal'' (also known as the Fair Transparent Arbitration Procedure (FTAP)) has been endorsed and propagated by many noteworthy economists, NGOs, and the Jubilee Movement. This article espouses the basic tenets of the Proposal and explains how it can help resolve the Greek crisis. Implementing_Raffer_Proposal (Download…