Swiss Economicblogs.org
In a Peterson Institute working paper, Jeromin Zettelmeyer, Eike Kreplin, and Ugo Panizza conclude that the answer to that question depends on your assumptions. The authors compare several scenarios, including scenarios A–C, the baseline scenario of the European institutions and two more pessimistic variants; scenario I which underlies the IMF reasoning and which assumes that “Greece will not undertake the structural reforms needed to achieve higher potential growth”; and scenario D,...
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