Yanis Varoufakis

Here is a quote from a recent pro-austerity article in an Establishment Greek newspaper: “Let us not forget that [Greece’s] primary surplus in 2009 was 10% and the result was a recession of 2.8%. Thus the fiscal multiplier was -3.5, not 0.5, not 0.75, not 1.7!” The author’s purpose, of course, was to argue that the IMF’s mea culpa regarding the mis-calculation of fiscal multipliers was, in fact, grossly exaggerated; that if there was an error it was one of over-estimating Greece’s multiplier rather than underestimating it. Indeed, through his illiterate eyes, Greece’s multiplier appears to the article’s author… negative, a negative 3.5, and thus he comes to the remarkable conclusion that the nation’s problems would be, as the author in fact argues, “to hand over the keys” to Greece’s creditors.

It is now becoming obvious that economic illiteracy has forged an unbreakable alliance with economic misanthropy and self-hatred by certain…

View original post 409 more words

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s