American economist and Economic Sciences Nobel laureate Paul Krugman published an article on his blog on Tuesday where he argues that the latest Greek proposal on debt relief is “completely reasonable”.
In his article Mr. Krugman notes that Germany would “unreasonable” to reject the Minister of Finances Yanis Varoufakis’ proposal for a “smart debt engineering” with the growth clause and perpetual bonds.
Mr. Krugman explains that “the key point is to grant Greece some relaxation – but not elimination – of the requirement that it run large primary surpluses, thereby creating room for recovery”.
The economist concludes that “SYRIZA is making sense” and that “the next move is up to the creditors”, stressing that if the Greek plan is rejected “all assertions that Germany understands reality are proved wrong”.
