Complacency about Grexit is like complacency about Lehman, Stiglitz warns
by Joseph E. Stiglitz
NEW YORK (Project Syndicate) — European Union leaders continue to play a game of brinkmanship with the Greek government. Greece has met its creditors’ demands far more than halfway. Yet Germany and Greece’s other creditors continue to demand that the country sign on to a program that has proven to be a failure, and that few economists ever thought could, would, or should be implemented.
The swing in Greece’s fiscal position from a large primary deficit to a surplus was almost unprecedented, but the demand that the country achieve a primary surplus of 4.5% of gross domestic product was unconscionable.