Greece's sovereign debt and economic realism

CEPR Policy Insight No 90

Jeremy I. Bulow, John Geanakoplos

After another six months of discussions, Greek debt negotiations succeeded in once again kicking the can down the road. This paper analyses how sophisticated and experienced negotiators like the IMF, the Eurozone leadership, and by now even the Greeks, could have let negotiations drag out for so many years, and goes on to propose a plan which might be just radical enough to meet the needs of all parties