The evidence is becoming increasingly clear that German policy makers are prepared for Greece to exit the euro zone. Knowing this changes how one should view the likely policy responses in Europe.
We have had indications of various sorts for some time that Germany is preparing for Greece’s exit from the euro zone. Indications that the Germans wanted to throw the Greeks out of the eurozone began in November. However, with the Greek election having radicalized Greek politics, the Germans are coming out in force talking openly about Greece's departure from the euro zone.
Now mind you, there is no mechanism to formally eject Greece or any other member. A majority of Greeks want to stay in the euro zone according to polls. And even Greek anti-austerity party Syriza is saying that they wa...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.