Prices and programs. Greece did already implement lots of austerity measures.

Real-World Economics Review Blog

Johan van Overtveldt, the Belgian minister of finance, is wrong. In an interview with him in the Financial Times we can read:
Although Mr Van Overtveldt says he agrees with Mr Varoufakis that the Greek programme has been a “failure”, he believes authorities in Athens are to blame — not creditor countries.

“It works in Spain, it works in Portugal, it worked in Ireland,” said Mr Van Overtveldt. “But then it does not work in Greece, because the Greek authorities have not done what they needed to do, not across the board.”

“Don’t blame it on ‘the institutions’,” he added. “It is not the programme, it is the execution.”

But he is wrong. Austerity consists of a supposedly magic tonic of wage cuts and less government expenditure plus less rights for labor which has to lead to a lower price level which will somehow solve the unemployment problem. Greece…

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