Now what? If Greece still had its own currency, the case for devaluation would be completely overwhelming at this point. What this means, in turn, is that everything — the ongoing economic disaster in Greece, the bitter divisions within the euro area, the perplexity of even the best intentioned policymakers — flows from the supposedly insuperable technical difficulties of going off the euro.
Can this possibly make sense given the extremity of the situation?
Thursday, July 16, 2015
Krugman on why Greece shouldn't consider "Grexit" unthinklable
Paul Krugman writes again on the macroeconomics of Greece and the relevant considerations (History Lessons for Euro Debtors 07/15/2015):