{"id":12425,"date":"2015-07-15T16:05:38","date_gmt":"2015-07-15T20:05:38","guid":{"rendered":"http:\/\/multiplier-effect.org\/?p=12425"},"modified":"2015-07-15T16:09:47","modified_gmt":"2015-07-15T20:09:47","slug":"deflation-uber-alles","status":"publish","type":"post","link":"https:\/\/blogs.bard.edu\/multiplier-effect\/deflation-uber-alles\/","title":{"rendered":"Deflation \u00dcber Alles"},"content":{"rendered":"

The “negotiations” that surrounded\u00a0the latest Greek deal do\u00a0not reflect well on the system (such as it is) of EMU governance. And there are no silver linings to be found in the outcome of this process.\u00a0It is a testament to\u00a0how far we are from “normal” that even the best-case scenario would have left little room for optimism. Even if Greece had received\u00a0a sensible package — one involving debt restructuring and a pause in\u00a0austerity — this would still have meant an intolerably long period\u00a0of high unemployment. (“Even if the Greek economy were to miraculously bounce back to its precrisis growth rate, it would take almost a decade and a half to return to precrisis employment levels.” p. 3<\/a>\u00a0[pdf])<\/p>\n

Moreover, the particulars\u00a0of the Greek situation aside, it is important to recall\u00a0how far we are from a resolution of the broader eurozone crisis, which will arguably not end until the fundamentally flawed euro setup — of which the Greek crisis is a symptom — is addressed.\u00a0In this vein, Pavlina Tcherneva recently spoke to Richard Aldous of The\u00a0American Interest<\/em> about the latest Greek deal and\u00a0the\u00a0“stateless currency” that is the euro\u00a0(listen to the podcast here<\/a>).<\/p>\n

Tcherneva also touched on\u00a0an aspect of\u00a0this broader\u00a0theme\u00a0in her recent RT interview. In the clip below she links the\u00a0“deflationary environment”\u00a0in\u00a0the eurozone to\u00a0the absence of a central fiscal authority:<\/p>\n

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