Our students are thinking: “At least it’s not Argentina again.” We’re thinking: “This is great, a real-world experiment we can talk about for years.”
Some things to think about as the Greeks vote “no”:
- Anil Kashyap on how we got here, the best thing we’ve read on the topic. It’s like “Murder on the Orient Express,” everyone’s guilty. Here’s another one if you like this kind of thing.
- This likely means more austerity not less. Without support from the IMF and EU, Greece will have to finance government spending with its own tax revenue. That’s true even if it pays nothing on its debt.
- Kim Schoenholtz on the difference between Greece and Puerto Rico: PR’s banks aren’t supported by local deposit insurance, Greece’s are. If the banks go under, that’s bad for everyone. It will be interesting to see if the European Central Bank reverses its longstanding policy and supports the Greek banking system — or not.
- Does a “no” vote give Greece more leverage, or is it a painful self-inflicted wound?
- Can we drag this out until fall so we can use it in class again?
Soccer update: Pay attention, this is important to your education in things people care about in the rest of the world. Chile beat Argentina in the Copa America, the soccer championship of Latin America, when Alexis Sanchez converted a Panenka. If you can use the word Panenka in a sentence, you’ll be welcome in most of the world.