Dani Rodrik on the Greek Debt Problem

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Dani Rodrik offers his opinion on the Greek crisis. He offers Argentina as an example of a state that defaulted on its debt but has recovered by depreciating its currency and building up its export business. Greece does not have this option, however, because it is in the eurozone. The imposition of austerity on the Greek state will not work either because it will only shrink growth and reduce tax revenues further. The longer that we wait for a solution, however, the worse the situation will get. Rodrik suggests that delaying the needed actions is not the best way to deal with the problems.