Greece’s poor fit in the Eurozone

By Anastasios Retzios

I know that some of the subjects here are a bit too technical for some.  However, they are the core of the current crisis in Greece.I promised answers to some specific issues that seem to pre-occupy some of the members. Here they are: (a)   “Optimal common currency area”:  There has been a lot of discussion on this rather very simple idea.  The area that is “optimal” for the introduction of a common currency includes countries and economies that are expected to behave identically at financial challenges.  To make this simple, an “optimal area for a common currency” is one in which the economy will show the same resilience (or weakness) upon a “down” business cycle or recession.

Retzios: The Eurozone is leading Greece to ruin

 It is easily discernible that the Euro and the Eurozone regulations (and its current leadership) are a poor fit for Greece that needs its own monetary policy to be successful.  Our adherence to the Eurozone is thus leading the country to ruin.  But we cannot drop our “European-ness” and our adherence to the Euro for dear life.  We are led to ruin because we cannot adapt to the changing circumstances and take our chances in a new paradigm.

Beppe Grillo's blog : What is happening to Greece today, will be happening to Italy tomorrow.

As was expected (and actually predicted) the Tsipras government has raised the issue of restructuring Greek debt and it is facing a full frontal clash with the EU and with Berlin. This is the beginning of a clash that not only affects Greece but all the indebted countries of Europe, including Italy. It relates to the very future of the European Union.
Let’s start with a statement: as Rogoff said, the experience of history shows us that,when a country’s debt exceeds 90% of GDP it becomes unrecoverable and the country inevitably tumbles towards Default. There are those that contest this affirmation, saying that there are historical cases that demonstrate the opposite.

The fact that Greece (and many other Eurozone countries) may be blackmailed by Mr. Draghi, tells a lot of about the Euro

 Anastassios D. Retzios, PhD

The Greek government soon found out that it means to be in the Eurozone and what it means not to have a central bank.  Siniore Draghi had little difficulty putting the squeeze on threatening to close down the Greek banks on February 11 (sοon coming up).  Well, when one is in the Euro, one gives “permission” to persons like Draghi to threaten the government with a credit squeeze.  I hope that the Euro supporters digest this lesson.  Mr. Varoufakis replied that Greece would not be blackmailed but these words simply underlined the position of Greece (in being easily blackmailed).  The fact that Greece (and many other Eurozone countries) are in position to be blackmailed by Mr. Draghi, tells a lot of about the Euro and the stupidity of any country being tied to a non-national currency and central bank controlled by nameless banksters in Frankfurt.