No more Grexit ...
(...) there is the factor that nobody will admit to: the policy of demanding harsh, front-loaded austerity has done unnecessary harm. Greece’s recession this year will, yet again, be much deeper than forecast in April, and so will next year’s, according to the IMF’s latest figures. The euro zone would never stoop to the mea culpa offered by the IMF in its latest World Economic Outlook, which admits to underestimating badly the effect of austerity in reducing economic output. The euro zone can, after all, always blame the indolence of earlier Greek governments. (...) Greece may be right in thinking that the biggest boost to its economy would be to end the “drachma drama”. But restoring confidence must also involve creditor countries, above all Germany. The euro’s problem is not just dysfunctional states, like Greece, but also a dysfunctional currency zone ...