Crystal balls? Or good economics?

An article from Bloomberg listed nine people who saw the Greek crisis coming years ago. The list may be narrowly confined to anglo-saxon economists, but I am quite happy that most of the people listed worked at, or were/are affiliated to, the Levy Institute.

Wynne Godley

Wynne Godley is the first in the list, given his prescient words in the London Review of Books, in October 1992. I am happy I contributed to spreading his thoughts in Italy.

Mat Forstater

Mat Forstater is a friend I regularly meet at the annual Minsky Summer Seminar at the Levy.

Stephanie Kelton

Stephanie Kelton now chief economist on the U.S. Senate Budget Committee, was often at the Minsky Seminar, before her latest appointment.

Randy Wray

Stephanie worked with Randy Wray, who is among the most prolific and influential economists at the Levy.

If so many economists doing research together got it right on Greece (as well as on the 2007 recession) maybe it is not by the power of crystal balls, but because of robust, consistent economic thinking?

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Greece: Conditions and Strategies for Economic Recovery

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Our latest Strategic Analysis for Greece

Greece: Conditions and Strategies for Economic Recovery
Dimitri B. Papadimitriou, M. Nikiforos, G. Zezza

The Greek economy has the potential to recover, and in this report we argue that access to alternative financing sources such as zero-coupon bonds (“Geuros”) and fiscal credit certificates could provide the impetus and liquidity needed to grow the economy and create jobs. But there are preconditions: the existing government debt must be rolled over and austerity policies put aside, restoring trust in the country’s economic future and setting the stage for sustainable income growth, which will eventually enable Greece to repay its debt.

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