Can the German proposal for Greece's compliance be replicated across the globe? | LinkedIn Answers | LinkedIn
Can the German proposal for Greece's compliance be replicated across the globe? | LinkedIn Answers | LinkedIn
Can the German proposal for Greece's compliance be replicated across the globe?
Germany has proposed to have a commissioner in Brussels to oversee budget cuts fir Greece to ensure that austerity measures agreed by that country are actually implemented.
Populist governments squandering public money are the rule rather than exceptions across the globe. It is very tempting for democratic governments to appease all those they see as their constituencies or interest groups.
What is perhaps required is an impartial supervision of budget expenses. Of course in the case of Greece the problem has urgency because of common currency whereas other countries like India can devalue by printing their way out of any self inflicted crisis. However devaluation whether internal or external ultimately results in lower relative wage rates and that can be preempted by not overspending in the first place.
Can the UN or IMF some day rise to this challenge.
Populist governments squandering public money are the rule rather than exceptions across the globe. It is very tempting for democratic governments to appease all those they see as their constituencies or interest groups.
What is perhaps required is an impartial supervision of budget expenses. Of course in the case of Greece the problem has urgency because of common currency whereas other countries like India can devalue by printing their way out of any self inflicted crisis. However devaluation whether internal or external ultimately results in lower relative wage rates and that can be preempted by not overspending in the first place.
Can the UN or IMF some day rise to this challenge.
posted by Unknown at 1:20 AM
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