Mr Varoufakis` “Modest Proposal“
Some Critical Remarks

Two years ago, Yanis Yaroufakis et al. (2013) made a “modest proposal for resolving the Eurozone crisis“[1], expecting to jumpstart the European economy within months. They called it a “modest proposal“ for two reasons: (i.) The proposed reforms are regarded as being fully in line with the existing constitutional framework in Europe, not requiring any treaty changes. (ii.) Moreover, the reforms do not require any fiscal transfers or guarantees. On his website, Professor Varoufakis promises that his proposal would “solve the crisis without German taxpayers paying a cent, without any debt buybacks, without rewarding the profligate or causing inflationary pressures, without bending the rules of the Union.“[2] In this column, I take a closer look at Mr. Varoufakis` proposal and determine whether he is able to keep the promises made.

“Mr Varoufakis` “Modest Proposal“
Some Critical Remarks
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