Greek reforms can yet stave off default

Commentary feature, written by Greek academic economists Costas Meghir, Dimitri Vayanos and Nikos Vettas, argues that default in Greece can be avoided through an ambitious and feasible program of reforms.

Greece’s default is viewed by many as a foregone conclusion. Financial markets put the probability as higher than 50% that Greek bonds will become worthless over the next five years. The authors of this article believe that default can be avoided through overdue reforms. These must combine deregulation and long-term investment in education to restore competitiveness, with radical pension, healthcare and tax reform to eliminate pressure on public finances and improve incentives.

Website: Greek Economists for Reform.com http://greekeconomistsforreform.com/

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