In an op-ed for The Globe and Mail, Associate Professor Michael King critiqued Greece’s current debt instability. For Greece and its Eurozone counterparts, a compromise is off the table, and a write-down of Greece’s debts has become inevitable. King noted this write-down might happen through Grexit, which is the exit of Greece from the eurozone monetary union.
To support his critique, King looked at the International Monetary Fund’s debt sustainability analysis.
“Grexit may be the unavoidable outcome. And as painful as it may turn out to be, it may be the best option for Greeks themselves,” said King. “To agree to a third bailout under punishing terms would only delay the inevitable. Greece can simply not afford to pay back its creditors in full.”
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