Leaked Greek bailout document: Expansionary fiscal consolidation has failed

By Rob Parenteau, CFA, sole proprietor of MacroStrategy Edge, and a research associate of The Levy Economics Institute.

Below is the leaked Greek bailout document that everyone has been talking about. Yesterday, the Financial Times wrote:

Greece’s economy has deteriorated so severely in the last three months that international lenders would have to find €252bn in bail-out loans through the end of the decade unless Greek bondholders are forced to accept severe cuts in their debt repayments.

The dire analysis, contained in a “strictly confidential” report by international lenders and obtained by the Financial Times, is more than double the €109bn in European Union and International Monetary Fund aid agreed just three months ago.

-EU looks at 60% haircuts for Greek debt - ...


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