La Follette School professor Mark Copelovitch weighs in on Greece’s “no” vote on its referendum on the bailout proposals from its international creditors in a new article.
Writing on the Washington Post’s Monkey Cage blog, Copelovitch notes that what happens next in Greece is unclear given that 61.3 percent of people voting rejected the bailout proposals from the European Commission, the International Monetary Fund and the European Central Bank. “Those proposals would have imposed further austerity on a country that has already experienced a crisis worse than the Great Depression,” Copelovitch notes.
Copelovitch is an expert on the political economy of international trade, money, and finance. Macroeconomic divergences and lack of fiscal policy coordination among the countries bound by the euro and a single monetary policy are the underlying problems of the European monetary union, he says. Unless these problems are addressed, Greece leaving the monetary union is unlikely to provide more than a temporary respite for the eurozone. European leaders must push forward with reforms that not only put an end to Greece’s Great Depression but also strengthen the institutions of Eurozone governance. If they do not, he argues, we may look back at the current Greek tragedy as the beginning of the euro’s final act.
Copelovitch also shared his expertise during a public debate on global imbalances hosted by the University of Toronto’s Monk School of Global Affairs in June. In “A World out of Balance: Are the “Mercantilists” Germany and China undermining the Global Economy?” Copelovitch and other leading political economists shed light on the causes and consequences of fundamental imbalances in the global economy. Video is available online. Copelovitch discussed the role of imbalances between Germany and neighboring European economies in the current euro crisis.
Greece votes no. Is this the end for the Eurozone?, July 7, 2015, Monkey Cage, Washington Post