Jeremy Bulow & Kenneth Rogoff : The modern Greek tragedy | VOX, CEPR’s Policy Portal

 The modern Greek tragedy | VOX, CEPR’s Policy Portal

The conventional wisdom in Greece is that the nation has suffered years of excessive, Troika-imposed austerity in a short-sighted effort to extract maximum repayment. This column argues that, in fact, Greece was a net receiver of Troika funds from 2010 to mid-2014, with a modest reverse flow since Greece stalled on its reforms. Both sides have negotiated in their self interest – influenced by bargaining threat points that have had everything to do with the direct costs of default and little to do with Greece’s concern about its reputation for making repayments.

see also Why sovereigns repay debts to external creditors and why it matters