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Myths and Self-Deceptions about the Greek Debt Crisis
I argue against the following eight myths:
Myth #1: Default or “bankruptcy” would have been (and still would be) catastrophic for Greece.
Myth #2: The troika’s objective has been to “rescue” Greece.
Myth #3: The main cause of the crisis was the corruption of Greeks and the Greek State
Myth #4: If only the Greek governments were competent, the targets of the Memoranda in the agreements would not have failed.
Myth #5: Following the troika’s policies would have lead Greece back to prosperity.
Myth #6: Exit from the eurozone would have been (and still is) the worst possible outcome for Greece.
Myth #7: In its negotiations with the troika, the Greek governments have had very little bargaining power.
I consider each myth in turn and offer relevant facts and history as needed. I then briefly offer some observations about why these myths have persisted. I then discuss how the pattern of decision-making within the Eurozone and the European Union more generally pose a serious challenge to democracy throughout Europe, and how wide swaths of European elites and European intellectuals appear to ignore this fundamental problem. At the end I offer some concluding remarks.
http://www.economics.uci.edu/files/docs/workingpapers/2014-15/14-15-11.pdf
Stergios Skaperdas
Department of Economics
University of California, Irvine
Revised on June 12, 2015
Myth #1: Default or “bankruptcy” would have been (and still would be) catastrophic for Greece.
Myth #2: The troika’s objective has been to “rescue” Greece.
Myth #3: The main cause of the crisis was the corruption of Greeks and the Greek State
Myth #4: If only the Greek governments were competent, the targets of the Memoranda in the agreements would not have failed.
Myth #5: Following the troika’s policies would have lead Greece back to prosperity.
Myth #6: Exit from the eurozone would have been (and still is) the worst possible outcome for Greece.
Myth #7: In its negotiations with the troika, the Greek governments have had very little bargaining power.
I consider each myth in turn and offer relevant facts and history as needed. I then briefly offer some observations about why these myths have persisted. I then discuss how the pattern of decision-making within the Eurozone and the European Union more generally pose a serious challenge to democracy throughout Europe, and how wide swaths of European elites and European intellectuals appear to ignore this fundamental problem. At the end I offer some concluding remarks.
http://www.economics.uci.edu/files/docs/workingpapers/2014-15/14-15-11.pdf
Stergios Skaperdas
Department of Economics
University of California, Irvine
Revised on June 12, 2015