Exiting the Eurozone will only exacerbate the austerity Greek voters have balked at, says Kent Hughes. Rather than leave, Greek economic and political leadership should seize the opportunity to rebuild a civic culture that will support stable finances and long-term growth.
Is exit the only option? The path to the drachma can seem very tempting. But, the reality will prove difficult, damaging, and politically dangerous. Stay or leave, Greece faces a period of real austerity. Government revenues do not cover pension costs, government salaries, or other government expenses.
Can the Greeks weather the economic storm? Can the Greeks create the institutions that will lead to long-term growth—including a tax and spending system that works?
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