The Fiscal Crisis in Greece and Implications for the Eurozone
Jacob Kirkegaard and Nariman Behravesh (Chief Economist at IHS Global Insight) discuss financial instability in Greece in a conversation moderated by Sara Johnson (Managing Director, Global Macroeconomics at IHS).
Rising fiscal deficits and debt levels are threatening financial stability in Greece and other European countries. In an unprecedented move, the Eurozone has agreed to provide financial support to Greece with the involvement of the International Monetary Fund. The crisis has exposed numerous fault lines within the Eurozone– unsustainable public finances, long-term divergences in trade competitiveness, limited policy options in the currency union, and tensions among key players in dealing with these problems. Our expert panelists will discuss the situation in Greece, the support plan and its chances for success, scenarios for the Eurozone, currency and debt market implications, and prospects for the region’s vulnerable economies.