- Large parts of Greek economy would be cut off from funding
- Reprofiling cannot be a substitute for fulfilling adjustment pledges
- If fail to take adjustments, aid cannot be taken for granted
- Sticking to non-standard measures too long will change market’s perception of risk in an undesired way
- Challenge now is to return to normal fiscal monetary policy
New Bundesbank president Weidmann sounds sufficiently tough, but much of what he says is bunk.
If Greek doesn’t live up to its austerity pledges, the EU is going to abandon them? Horse feathers…
Greece is too big to fail…No matter how much the ECB, IMF, EU huff and puff, at the end of the day they will pony up more aid to avoid a dreaded restructuring.
