October 17, 2013
Will they grow?
Austerity politics have always been considered as a strong remedy against macroeconomic instability and a pathway towards consolidating public finances. In a global context, austerity politics have almost always been accompanied with bailout plans and foreign assistance -i.e. loans- that have been provided by other member-states -i.e. member-states of the IMF- or by private funds that develop a mentality of bargain or decide to risk considerable amounts to finance indebted states. In both cases, the risk of downturn is scarcely uncontrollable, as security swaps guarantee the reception of at least the amount of interest rates linked with a certain loan. Even if a certain economy defaults, there is the paying off clause which minimizes the cost of lending. But what about the people themselves? Is there any mechanism that could establish a minimum safety net when economy goes insane?
Greece presents a unique phenomenon where economy values irresistibly much […]