Are They Trying to Make Things Worse?
The Greek Parliament has approved a new set of programs and policies designed to contract the Greek economy even more than it has already suffered in order to win approval of another round of bailout funding from the IMF and the European community. The Dismal Political Economist previously described the European/IMF policy as Non-Lethal Suicide.
The upcoming $17 billion loan from the IMF and
That program was intended to restore the confidence of private investors, and allow the country to begin borrowing money on its own again as early as next year.
It didn’t work, as the economy continued contracting, and the Greek government stumbled in implementing the broad set of reforms promised to the IMF and
Why are the Greeks even accepting this program?. The problem now is that the previous policy has been so destructive that the Greek government cannot, in the terms of business bankruptcy, meet payroll. If it does not accept the European bailout money civil society in
So what we have is continuation of a policy that didn’t work. This leads to a question on the International Finance final exam:
17. Exactly who is leading the European program to deal with the financial and economic crisis in
A. Groucho, Harpo,
, Gummo and Zeppo. Chico
B. Larry, Curley and Moe
C. Homer and Jethro
D. Gilligan and the Skipper
E. Those two guys in Dumb and Dumber
Don’t answer. It’s a trick question. Based on what has happened a case can be made that any and all of the above are involved.