An Austrian Perspective On Greece | Seeking Alpha
- Austrian economist tends to blame soft money, market inefficiencies and a bloated state for the Greek crisis.
- However, since these have been present for decades in the Greek economy, they can’t be responsible for the unprecedented collapse.
- In our view, the combination of hard money, the constraints of a fixed currency system and unprecedented austerity has been responsible for the Greek crash.
- Curiously enough, these are all part of Austrian recommendations.
- While their emphasis of debt retirement and structural reforms are useful, we think they are missing the essence of the crisis entirely.
Tags: Economics · Eurocrisis