In the first year of the German occupation of Greece, austerity and "wage cuts" were imposed on the economy; at least 300,000 Greeks died of hunger.
Here is one contemporary account of that occupation. The IMF, on the other hand, can't override EU strictures on currency policy and on fiscal policy.
Who then will play tough guy with Greece?
Tyler, think who could play tough guy with California and you may have an answer to your question about Greece. Hint: look for the conditions for (1) the existence of a tough guy, and (2) the success of an adjustment plan.
Another failure of the thesis that wage cuts leads to greater employment?
Spencer: The point of cutting the wages of government workers in Greece isn’t to increase government employment. It’s to save money.
It seems this is a preview of what will happen over the next ten years in this country… all the lefties are saying we have been bankrupt by war… wait until they get the Social Secuity tab
@chris
That article misreads German intentions. They would not find it ‘emotionally satisfying’ to see Greece default; this misperception is pervasive throughout the piece. Postwar German leaders have consistently viewed European unity not just as a positive-sum game but a requisite for survival. They’re already been paying for their partners’ prolifigacy and have shown little inclination to stop. The political idea of Europe is not a scheme by the small states to keep Germany from reenacting ‘Greatest Hits of the OkH’ but something the Germans believe in, and are willing to pay for.
Angela Merkel, the last great Statesman of the West, that’s who.
“On legal grounds, on constitutional grounds and on principle.”
http://www.guardian.co.uk/theguardian/2010/feb/11/germany-greece-merkel-bailout-euro
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