Talking post (podcast). Click to open as MP3.
- The core problem is that the Greek economy is unproductive in structure and ethos.
- Greece will probably have to default against the debt market, if not now then later.
- It would be better if the EU dealt with the issue instead, by taking over and restructuring some debt.
- The EU should probably create a framework to deal with national solvency in a consolidated way.
- Fortunately the Greek economy has poor coupling, and could be protected temporarily by price controls.
- In the long run the solution is to make Greece more productive by fixing exactly that – creating high coupling of innovative firms with the international economy. The best way to do that is probably to create international economic zones, which work in English by Western rules.