(When I stated that Schauble was "veering to the left" by supporting Grexit, I was busting chops. In this article Dean Baker takes his proposal seriously, making it sound like the sort of thing you would hear from Alex Callinicos or Michael Roberts.)
There are two major benefits from the Schäuble plan. First, it would put Greece in a position to restructure its debt. While there would be many battles with creditors over the extent and conditions of any write-downs, the immediate outcome would be to free Greece from the obligation to run large primary budget surpluses to pay interest on its debt. This could provide a substantial boost to its economy as money that would be flowing out of the country for debt service could instead be used for domestic purposes like sustaining infrastructure and paying for health care and pensions. The other major benefit would be that a lower valued currency would make Greek goods and services more competitive internationally. This should provide a substantial boost to its net exports, which would lead to growth and jobs. full: http://www.truth-out.org/opinion/item/31953-wolfgang-schauble-the-hero-of-the-greek-austerity-crisis _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
