Renowned economist Paul Krugman has called on the Greek people to vote against a proposed plan for their bankrupt nation to pullout of the Euro. He made the call in a blog in the New York Times.
A national referendum on the matter will be held in Greece on July 5th.
Greeks are panicking as their government has limited the amount of money which they can withdraw from banks. They can barely get and cash out of ATMs. The Greek crisis caused panic in the world markets as well with the Dow Jones plummeting yesterday. But the Euro has not lost value against the Dollar because of the crisis, at least not yet.
Krugman wrote that he would vote against leaving the Euro, “for two reasons. First, much as the prospect of euro exit frightens everyone — me included — the troika is now effectively demanding that the policy regime of the past five years be continued indefinitely. Where is the hope in that? Maybe, just maybe, the willingness to leave will inspire a rethink, although probably not. But even so, devaluation couldn’t create that much more chaos than already exists, and would pave the way for eventual recovery, just as it has in many other times and places. Greece is not that different.”
Read the whole editorial here.