Krugman:’Quizá griego’ overestimated the competence of Government – Financial Journal

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The American economist and Nobel Prize in Economics in 2008, Paul Krugman, expressed disappointment with the response given by Athens to the outcome of negotiations with creditors officers and admitted he could have overestimated the capacity of members of the Greek Government.

In an interview with CNN, economist shown “in shock” to learn that the Government Alexis Tsipras had not designed any alternative that endorse their demands.

“Maybe I could have overestimated the competence of the Greek government,” admits Krugman a week after the Greek government to reach an agreement with its partners euro for negotiations on a third ransom to introduce a series of reforms.

“He did not even occur to me that would be willing to resist without having done any contingency planning,” said Krugman, who considers “incredible” that Athens would think “simply demand better conditions without any backup plan.”

On the other hand, the 2008 Nobel argues that the risk of Greece leaving the euro is still present if the country Hellenic do not get a debt reduction as so far been denied.

In this sense, Krugman warns that if the ‘Grexit’ cause this circumstance would have “enormous implications” for the future European project, and that if Greece leaves the euro and will recover economnía could encourage other political movements that challenge the established order by the European common currency

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