Τετάρτη 4 Ιουλίου 2018

No (to Stiglitz)

"It is hard to advise Greeks how to vote on 5 July. Neither alternative – approval or rejection of the troika’s terms – will be easy, and both carry huge risks. A yes vote would mean depression almost without end. Perhaps a depleted country – one that has sold off all of its assets, and whose bright young people have emigrated – might finally get debt forgiveness; perhaps, having shrivelled into a middle-income economy, Greece might finally be able to get assistance from the World Bank. All of this might happen in the next decade, or perhaps in the decade after that".

That's how economist Stiglitz had explained his preference to a No vote in the Greek referendum, 3 years ago these days. Given that the Tsipras government ignored the referendum and adopted harsher terms (with cross-party support to counter defections of his own radicals, under an "emergency" setting), it is quite possible that such detached intellectuals still feel at ease with their lighthearted 2015 advice.

After all, the No became a virtual Yes and some of Stiglitz's warnings are partly confirmed (also because they were vague enough and/or have a 10-20 year horizon, by which time he will probably be dead or senile).

It is tricky to challenge specialists outside one's field but one can still legitimately wonder, whether this cry-wolf game (on Greece then and on Italy etc. today) does any good to the very people these savants are supposed to care about.

Like the expert himself, I have made up my mind on this last point, and it is a confident No.

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