Stiglitz: Reform or Divorce in Europe | 79 comments (79 topical, 0 editorial, 0 hidden)

Hopefully, some discussions and a general plan will have been prepared.

As Migeru pointed elsewhere, if such a plan was prepared in advance, it would raise a lot of political opposition, unless it is kept secret, which would be impossible.

And I can say I seriously doubt Yanis Varoufakis would support a SEURO union.

"Dieu se rit des hommes qui se plaignent des conséquences alors qu'ils en chérissent les causes" Jacques-Bénigne Bossuet

by Melanchthon on Sun Aug 28th, 2016 at 09:20:15 PM EST
[ Parent ]

Re: SEURO? (none / 1)

Informal discussions between principals could be kept contingent, hypothetical and fairly confidential. Those involved would have to be careful not to deny the rumors, just dismiss them as mere rumors based on hypotheticals. "It is never official until it is denied."

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Aug 28th, 2016 at 09:34:23 PM EST
[ Parent ]

Re: SEURO? (none / 1)

It would make perfect sense for Italy or other countries faced with the prospect of the collapse of the Euro to consult with Yanis Varoufakis if he agrees. After all he almost certainly has the best grasp on all of the problems involved from his experience with Greece. And it would be impossible to distinguish whether those discussions also included a possible SEURO Union - unless a party to the discussions spoke publicly, and even then...

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Aug 28th, 2016 at 09:43:44 PM EST
[ Parent ]

Yanis Varoufakis (4.00 / 4)

Yanis Varoufakis is politically toxic as far as Europe's political and financial elite are concerned. Anything involving him will immediately be dismissed as:

academic
not serious
wrong headed.

So yes, if a Seuro actually emerged from any discussions involving him it would come as a complete shock to Europe's elite as they will have steadfastly ignored everything involving him. He could have been blogging about it for months and presenting academic papers on the topic, and it would still come as a shock to them.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sun Aug 28th, 2016 at 11:39:09 PM EST
[ Parent ]

Re: Yanis Varoufakis (none / 1)

So much the better. "Europe's political and financial elite" NEED a whack up side their collective heads with a 2X4 to get their attention. Might even get some to pull their heads out of where they have so long been - though I cannot imagine how the mechanics of that metaphor might work.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Aug 29th, 2016 at 12:03:21 AM EST
[ Parent ]

Re: SEURO? (4.00 / 4)

Agreed. His ideas would seem to be more along the line of creating a parallel currency in the deficit country, which under Lisbon is legal.
This would seem easier to organise than SEURO by an order of magnitude and make sure that most of the stimulus happens locally until such time as this currency is recognised abroad, which may be never. So that makes two advantages. Not sure how it could be gamed by the financial sector as convertibility would be restricted.

There is a possibility that in a second phase such currencies could join a SEURO I suppose, but that could not be an immediate response to a crisis.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Mon Aug 29th, 2016 at 06:38:58 AM EST
[ Parent ]

Re: SEURO? (none / 1)

There is a possibility that in a second phase such currencies could join a SEURO I suppose, but that could not be an immediate response to a crisis.

That would depend entirely on the desires of the first two members of a SEURO. An Itallian 5* led government and Greece could very well decide to set up such a SEURO just for the reasons I have indicated. That step alone might bring about a change in the attitudes of the German Government which could obviate the need - or not. But the very existence of such a union would be an existential threat to Germany's current dominant position - if Germany has the wits to see that and act on it.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Aug 30th, 2016 at 09:52:29 PM EST
[ Parent ]

Stiglitz: Reform or Divorce in Europe | 79 comments (79 topical, 0 editorial, 0 hidden)

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