Post by arfanho7 on Feb 25, 2024 5:08:09 GMT
As investor Wilbur Ross HBS MBA has poignantly put it The country that brought us democracy may now take itself into chaos. We asked three Harvard Business School professors to offer their thoughts on the Greek economic crisis. Their answers were written before last week s referendum vote by the Greek people but their insights remain valuable.
The Need For Sustainable Growth Calling for a referendum asking the Greek people to stay in the Euro might have been a good way out of the brinkmanship of the past weeks but not after payments to the International Monetary Fund have been missed and European funding has ended. These tactics have created high and Ukraine Mobile Number List unnecessary uncertainty that has brought the Greek economy to a standstill. Why pay taxes Why pay suppliers Why pay wages Why pay loans With what What does a no mean What does a yes guarantee These weeks have been a nightmare with no medium of exchange and banks facing growing lines of depositors who want to withdraw their euros but don t know whether the to withdraw their funds at a later date—and at what exchange rate.
This happened in Brazil in the early s and in Argentina in the early part of this century when similar desperate policies were enacted. The experience in South America of bank holidays capital controls and default are not encouraging. There is a mistaken view that these countries fared well after these actions were taken. In fact acommodity boom helped Argentina reignite its economy but not before extreme hardships took their toll—imports were extremely expensive medicines could not be found ordinary citizens income was cut by a third vulnerable groups suffered. But more important fifteen years later the economy continues to decay inflation is rampant and many people continue to suffer.
The Need For Sustainable Growth Calling for a referendum asking the Greek people to stay in the Euro might have been a good way out of the brinkmanship of the past weeks but not after payments to the International Monetary Fund have been missed and European funding has ended. These tactics have created high and Ukraine Mobile Number List unnecessary uncertainty that has brought the Greek economy to a standstill. Why pay taxes Why pay suppliers Why pay wages Why pay loans With what What does a no mean What does a yes guarantee These weeks have been a nightmare with no medium of exchange and banks facing growing lines of depositors who want to withdraw their euros but don t know whether the to withdraw their funds at a later date—and at what exchange rate.
This happened in Brazil in the early s and in Argentina in the early part of this century when similar desperate policies were enacted. The experience in South America of bank holidays capital controls and default are not encouraging. There is a mistaken view that these countries fared well after these actions were taken. In fact acommodity boom helped Argentina reignite its economy but not before extreme hardships took their toll—imports were extremely expensive medicines could not be found ordinary citizens income was cut by a third vulnerable groups suffered. But more important fifteen years later the economy continues to decay inflation is rampant and many people continue to suffer.