Greece is a country that has always punched above its weight. Its population, after all, is barely more than Chad’s. But it has rarely grabbed as much attention as now with a debt crisis that has gone as far as having some people predict the downfall of the whole house of euro.
With this in mind, MacroScope has noted two thoughtful new posts on Greece and the underlying issues facing the euro zone.
First, Willliam De Vijlder, chief investment officer at Fortis Investments, is taking an economist’s joy at all the various conflicts surrounding the issue — from worries about moral hazard (setting bad precedent for others with a bailout) to income transfers versus economic incentives (German retirement has been raised to 67, Greeks can head for the beach from 55).
Let’s be clear about this: the monetary union is not going to collapse, if only because the treaty which establishes the union says nothing about any country leaving it. It reminds me of the Eagles hit “Hotel California” from the 1970s: “You can check out any time you like, but you can never leave”.