tag:blogger.com,1999:blog-3448927642739850334.post1559476158929246724..comments2023-10-29T08:06:00.610+00:00Comments on The Political Economist: To Greece and backVuk Vukovichttp://www.blogger.com/profile/01878567452492217960noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-3448927642739850334.post-8513866376967616342012-04-09T15:53:59.361+01:002012-04-09T15:53:59.361+01:00Economic growth accumulated in Greece for the last...Economic growth accumulated in Greece for the last 10 years led by large <a href="http://im-an-economist.blogspot.com/2012/02/imported-instability-examining-causes.html" rel="nofollow">CA deficits and consumption</a> only hid the need for reforms. The systemic dependency of the economy became unsustainable and following the sudden credit stop all the domestic instabilities came to the surface. <br /><br />This is why I feel that debt and deficit reduction are not enough. Greece needs pro-market reforms. It's economy in the current rent-extracting state won't be able to survive austerity, simply because it lacks the institutions to do so.Vuk Vukovichttps://www.blogger.com/profile/01878567452492217960noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-20349644472516771292012-04-09T15:35:36.473+01:002012-04-09T15:35:36.473+01:00the danger you mention is the biggest potential pr...the danger you mention is the biggest potential problem with the Greek austerity, especially when it isn't working. People don't understand the delicate situation and their anger increases. After it accumulates for a few years, there is a close line to radicalisation and nationalism - just look at <a href="http://im-an-economist.blogspot.com/2012/01/eastern-approach.html" rel="nofollow">Hungary</a>.<br /><br />Even if the eurozone recovery picks up and pulls Greece along with it, it would be potentially even more dangerous not to deal with the institutional instabilities in the Greek labour market, its public sector, barriers to entrepreneurs and businesses, and so forth. Debt and deficit reduction, no matter how necessary they are, won't be enough to address all these issues.Vuk Vukovichttps://www.blogger.com/profile/01878567452492217960noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-55246923765719918822012-04-05T01:49:06.765+01:002012-04-05T01:49:06.765+01:00While I agree with your article. I think you might...While I agree with your article. I think you might be a bit too pessimistic on the ability of Greece to end up with some economic growth.<br /><br />As long as they actually do reduce their debt, and are seen to be moving in the right direction, then I can see some investment returning to Greece.<br /><br />In addition, if the world (and especially the Euro) economy picks up, then they could still benefit even thought they are undergoing austerity. <br /><br />I think their main danger is that they will not be able to stay the course and will become ruled by radicals.kyle8https://www.blogger.com/profile/13299846346032212714noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-13289412460721432922012-04-03T22:24:18.914+01:002012-04-03T22:24:18.914+01:00Or any Balkan country :)
the examples are numerous...Or any Balkan country :)<br />the examples are numerous..Vuk Vukovichttps://www.blogger.com/profile/01878567452492217960noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-57893386399861808642012-04-03T18:47:55.765+01:002012-04-03T18:47:55.765+01:00Or HungaryOr HungaryAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-3462205859410407872012-04-03T15:22:38.443+01:002012-04-03T15:22:38.443+01:00or Franceor FranceAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-81119722342164568112012-04-03T13:48:50.085+01:002012-04-03T13:48:50.085+01:00let's see if I can get this right: on your las...let's see if I can get this right: on your last question the countries that come to mind are UK, USA, Spain, Italy, Portugal, Ireland... am I on the right track?Charlienoreply@blogger.com