Nouriel Roubini's Global EconoMonitor

Roubini Topic Archive: Greece

  • The Year Ahead in the Eurozone: Lower Risks, Same Problems

    Financial conditions in the eurozone have significantly improved since the summer, when eurozone risks peaked because of German policymakers’ open consideration of a Greek exit, and the sovereign spreads of Italy and Spain reached new heights. The day before European Central Bank President Mario Draghi’s famous speech in London in which he announced that the […]

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  • Nouriel Explains More Positive Outlook on Greece to WSJ

    The recent Greek debt buyback announcement and apparent softening of German rhetoric on the troubled eurozone (EZ) member-state represents a short-term boost to morale, Nouriel Roubini told the Wall Street Journal recently, but does not change fundamental flaws in the structure of the EZ, and within Greece’s economic model. Roubini had previously held that Greece […]

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  • Greece Must Exit

    From Project Syndicate: The Greek euro tragedy is reaching its final act: it is clear that either this year or next, Greece is highly likely to default on its debt and exit the eurozone. Postponing the exit after the June election with a new government committed to a variant of the same failed policies (recessionary […]

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  • A Divorce Settlement for the Eurozone

    From the FT: The European Central Bank has averted disaster, sparking a powerful relief rally – but nothing fundamental has been resolved. Greece may need another debt restructuring; Portugal and Ireland may need restructuring too. Spain and Italy may yet come under the gun. Banking crises are hardly ever resolved without removing toxic assets or […]

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  • CNBC Video and Report – Portugal to Fall, Greece to Leave Euro Zone: Roubini

    CNBC — Portugal is likely to be the next to restructure its debt and exit the euro zone, economist Nouriel Roubini predicted on CNBC Friday. There are several euro-zone countries in trouble, including Italy and Spain, but Roubini sees Portugal as the weakest. The longtime bear and chairman of Roubini Global Economics said the Greek […]

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  • Greece’s Private Creditors Are the Lucky Ones

    From the Financial Times: A myth is developing that private creditors have accepted significant losses in the restructuring of Greece’s debt; while the official sector gets off scot free. International Monetary Fund claims have traditional seniority, but bonds held by the European Central Bank and other eurozone central banks are also escaping a haircut, as […]

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  • Full Analysis: Greece Should Default and Abandon the Euro

    The following piece of analysis was summarized in an OpEd published Tuesday in the Financial Times.  In order to clarify a number of points made, here is the full analysis. Greece Should Default and Abandon the Euro By Nouriel Roubini Greece is insolvent, uncompetitive and stuck in an ever-deepening depression, exacerbated by harsh and excessive […]

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  • Greece Should Default and Abandon the Euro

    From the Financial Times: Greece is stuck in a vicious cycle of insolvency, low competitiveness and ever-deepening depression. Exacerbated by a draconian fiscal austerity, its public debt is heading towards 200 per cent of gross domestic product. To escape, Greece must now begin an orderly default, voluntarily exit the eurozone and return to the drachma. […]

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  • Paying Greece’s Creditors: History Teaches Us Only So Much

    Now that the ECB has—for the time being—effectively vetoed any bail-in of Greece’s creditors—even a modest reprofiling of the debt, which would push maturities out at unchanged coupon while keeping face value at par—the official sector is running out of options for a meaningful bail-in of creditors. The latest idea—apparently deemed acceptable even by the […]

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  • A Loan and a Prayer

    From Project Syndicate:  

    By Nouriel Roubini and Stephen Mihm

    The countries known collectively as the PIIGS – Portugal, Ireland, Italy, Greece, and Spain – are burdened with increasingly unsustainable levels of public and private debt.   Several of the worst-hit – Portugal, Ireland, and Greece – have seen their borrowing costs soar to record highs in recent weeks, even after their loss of market access led to bailouts financed by the European Union and the International Monetary Fund. Spanish borrowing costs are also rising.

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