Tuesday, June 30, 2015

A Primer on the Greek Crisis

Professor Kashyap is a professor of economics and finance at Chicago Booth and sits in a comfy endowed chair.

From Arnold Kling's Askblog:

Anil Kashyap on Greece
Probably the best analysis so far. Mostly, it is a recap of the past. But in talking about the pending referendum, he writes,
if the public sides with Tsipras government, then there will be a very sharp recession over the next few months. Tax collection is likely to collapse. The Tsipras government is unlikely to survive the economic collapse.
He also writes,
Greece should have defaulted in 2010. Its debt burden then was unsustainable and nothing since then has changed this. It is true that financial markets were much more jittery at that time, but the money that was raised to pay off the creditors in that bailout could have been diverted to support Greece and other weak countries. Once the bad rescue of 2010 was undertaken, it was inevitable that some form of debt relief was going to be necessary.

A Primer on the Greek Crisis: the things you need to know from the start until now 
Anil Kashyap University of Chicago, Booth School of Business June 29th , 2015
(7 page PDF)