What economists should have done…

“the unemployed are not particularly good at paying back debts.” Indeed.

Real-World Economics Review Blog

Via @UndercoverMutha

Government economists should have pointed out that these (see below) were the predictable costs of Troika-austerity in Greece and to spell out, again and again, that the unemployed are not particularly good at paying back debts. What government economists did was of course designing this kind of austerity which caused the damage. Mind that the independent weekly ‘The Economist’, not know for its left leanings, promoted a real debt write down for Greece in a very early phase of the crisis (the actual debt write down was somewhat of a scam, as the Greek government almost immediately had to re-borrow the money to prop up the banks which owned a lot of the debt). Aside – at this moment nominal income of Greece is going down because of deflation, which means that the burden of debt tends to become larger even when no new debt ia added and…

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