Emergency Economic Summit for Greece

I just returned from a conference in Athens on the Greek economy. Yanis Varoufakis, Greece’s controversial Finance Minister, gave the (almost) final presentation to the 500 attendees making his usual point that Greece is insolvent not illiquid, meaning that its unsustainable debt should be written off (partially at least). While he is surely correct in that assessment, as usual he failed to discuss or even mention the structural reforms Greece needs to make to improve its productivity and thus lift its standard of living, which are also part of the conditions of the existing assistance program with the IMF/EU/ECB. He wants Greece’s creditors to forgive its debts first with reforms (which the new government says it wants to revers to some extent anyway) to come after. As past Greek behavior has destroyed any trust by its creditors and potential investors, the Troika (IMF/EU/ECB) is unlikely to agree to the Minister’s demands. The highlight of the conference was the critic of the Minister’s remarks by Nobel Prize economist Tom Sargent given immediately after and providing the actual concluding remarks for the day.

Here is an article on the conference that includes a short TV interview that I gave on the side.  http://fnf-europe.org/2015/05/20/fnf-greece-emergency-economic-summit-for-greece-stirs-up-unprecedented-media-coverage/

A video of the full conference and my presentation with be on the Atlas Network website later. https://www.atlasnetwork.org/news/article/how-greece-can-escape-from-economic-crisis?utm_source=AtlasNetwork+World10%3A+Highlights+from+the+global+freedom+movement&utm_campaign=a14b0b99fb-World10_5_6_15&utm_medium=email&utm_term=0_d4bce382cb-a14b0b99fb-26641201

The paper that I prepared for the conference can be found at: http://works.bepress.com/warren_coats/32/

All the best,

WarrenGreece EESG

About wcoats

Dr. Warren L. Coats specializes in advising central banks on monetary policy, and in the development of their capacity to formulate and implement monetary policy. He is retired from the International Monetary Fund, where, as Assistant Director of the Monetary and Financial Systems Department, he led missions to over twenty countries. Before then, he served as Visiting Economist to the Board of Governors of the Federal Reserve System, and to the World Bank, and was Assistant Prof of Economics at the Univ. of Virginia from 1970-75. Most recently he was Senior Monetary Policy Advisor to the Central Bank of Iraq; an IMF consultant to the central banks of Afghanistan, Kenya and Zimbabwe; and a Deloitte/USAID advisor to the Government of South Sudan. He is currently a member of the Editorial Board of the Cayman Financial Review and until the end of 2013 was a member of the IMF program team for Afghanistan. His most recent book is entitled "One Currency for Bosnia: Creating the Central Bank of Bosnia and Herzegovina."
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2 Responses to Emergency Economic Summit for Greece

  1. Warren, After having pulled Greece and the EU back from the edge of the cliff in 2011 through now, it seems folly to believe that the EU will permit Greece to exit the EU or to waive its debt. What should happen however, it the unification of the EU, the creation of an EU Treasury which would pass through Greece’s debt as the fed did Califronia’s debt back in 2009-11. The reinstating of the former government employees terminated by Greece in 2011 and forward was an irresponsible act if there ever was one (and Greece’s government has been guilty of many).

    There will be no Greek exit or any write down of debt in the future either. Reforms must continue and the debt must be repaid in Euros.

    Nice to hear from you again. Thought you retired.

  2. Tom Blau says:

    Warren,

    Nice job.

    Apropos Mr Winkle’s comment: Don’t retire. This post makes clear, you have too much to contribute. If only you had a little Greek ancestry, they could make you a minister. The very prospect might encourage some sobriety over there.

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