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Seven Myths about the Greek Debt Crisis

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  • Stergios Skaperdas

    ()
    (Department of Economics, University of California-Irvine)

Abstract

In Greece and other countries of the eurozone there are a number of misconceptions about the debt crisis. I argue against seven of such misconceptions (or, myths) about the effects of default, the primary cause of the crisis, the likely effects of an exit from the eurozone, the bargaining power of the Greek government in its negotiations with the EU/ECB/IMF troika, and others. Default and exit from the eurozone appears to be the most viable alternative in the long run; such a move would seem to require considerable preparation under short time constraints and a government with broad political support.

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File URL: http://www.economics.uci.edu/files/economics/docs/workingpapers/2011-2012/skaperdas-02.pdf
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Bibliographic Info

Paper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 111202.

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Length: 23 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:irv:wpaper:111202

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Keywords: Eurozone; Greece; debt; default;

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