The Greek financial crisis is heating up again.
Tyler Cowen, professor at Koch-funded Geroge Mason University, tells a Greek newspaper, which identified him as “America’s hottest economist,”what to expect:
[T]he [Greek] bailout programs were never going to work in the first place. The debt is too high and is more of a political weapon than anything which can be paid back. And the Greek economy requires very serious structural reform, more than the Greek people seem to wish to accept. That is two impossibilities in the situation right there, and then on top of that we have a dysfunctional EU, slow global growth across the board, and the refugee crisis. In that setting, can one expect anything other than failure?But in a decidedly non-Austrian school, non-libertarian perspective, he argued for the European people to bail out Greece via European Central Bank money printing:
It’s all a big bargaining game, and at the end of the day pulling the plug will have to be up to the Greeks. Everyone’s expectations are unrealistic, and everyone knows that, including the IMF and EU and many others too. But who will pull the plug? Tsipras almost did, and then backed away. In my view, sooner or later Greece will leave this arrangement because it simply isn’t workable. I don’t look forward to the resulting economic carnage.
I’d like to see the European Central bank monetize a big chunk of the Eurozone debt, though at this point that doesn’t seem so likely.