Greece: a possible tactic for reintroduction of the drachma

In the event that exit from the Eurozone should be necessary following a Greek default, it will be difficult and time consuming to reinstate the drachma because of the technical requirements of doing so. Yanis Varoufakis points out that: “To exit, we would have to create a new currency from scratch. In occupied Iraq, the … More Greece: a possible tactic for reintroduction of the drachma

Tsipras’s non-traditional playbook: the default and the referendum

In an earlier comment I referred to the Greek default to the IMF as suggesting that the actions being taken in the crisis were far off the ‘equilibrium path’ in the sense that it was not obvious that they were part of a set of ‘best responses’ in game theoretic terms, given their presumed objectives.   … More Tsipras’s non-traditional playbook: the default and the referendum

Greece and the IMF: The Realism of the Technocrats

Today’s news that the IMF is not prepared to put a fresh bailout package to the IMF board without debt relief amounts to a reclamation of independence and a restoration of a degree of good sense from the technocrats. The IMF, and Christine Lagarde, have understood that the legitimacy of the organization and its leadership … More Greece and the IMF: The Realism of the Technocrats

Aid: Tales We Tell Ourselves, or Growing up is Hard to Do

When in Madrid last week I happened to meet an official of the Spanish development agency, who drew my attention to the fact that Spain, always a country with a very low ‘aid’ budget (which had however been rising sharply before the crisis began in 2008) has had a sharp fall in its aid budget, … More Aid: Tales We Tell Ourselves, or Growing up is Hard to Do