The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Imports would also had to be cut, and the competitivness of export companies increased, as we have discussed in other places.
But it is not immediately obvious how this has any simple, mechanical relation to the sovereign balance.
A great idea is to avoid massive wage inflation that is completely disconnected to productivity increases...
Has this actually happened? Do we have time series for Greek wages and productivity around here somewhere, or are we talking out of our posteriors here?
Furthermore, nothing requires that foreign balance deficits must be balanced through the issuance of debt, private or public. It can just as well be financed by foreign entities aquiring equity in domestic companies.
Ah, the foreign direct investment pony. I was wondering when that one would show up.
Thing is, when all traditional avenues of (neo-)mercantilist policy have been choked off, Greece is left with precious few policy options to encourage FDI. And most of them are bad for both the Union and, in the medium term, for Greece.
Speculative real estate bubbles can be reined in with regulation,
But, again, it is not immediately apparent how this will repair the foreign balance.
Certainly, you can repair the foreign balance by gutting demand so far that your economy stops importing food and fuel. Please refer to Suharto's Indonesia for the results of that and get back to me if you still think that's a good idea.
Friends come and go. Enemies accumulate.
by DoDo - Sep 1 57 comments
by marco - Aug 24 20 comments
by car05 - Aug 27 10 comments
by gmoke - Aug 17
by john_evans - Aug 18 26 comments
by Metatone - Aug 14 24 comments
by Helen - Aug 3 38 comments
by DoDo - Aug 11 91 comments
by DoDo - Sep 157 comments
by car05 - Aug 2710 comments
by marco - Aug 2420 comments
by john_evans - Aug 1826 comments
by gmoke - Aug 17
by Metatone - Aug 1424 comments
by DoDo - Aug 1191 comments
by Helen - Aug 338 comments
by Frank Schnittger - Jul 2246 comments