Joseph Stiglitz: How I would vote on Greek referendum

A “Yes” equals more depression: Stigiltz

Joseph Stiglitz, a Nobel laureate in economics, weighs in on Greece’s Sunday referendum in an article published in UK online The Guardian. The famous economist is very critical on Greece’s creditors for driving the country’s economy into the ground by implementing an adjustment program that has admittedly failed. Stiglitz cites the free fall of Greece’s GDP by 25% over the past 5 years, while youth unemployment has skyrocketed to 60%. “It is startling that the ‘troika’ has refused to accept responsibility for any of this or admit how bad its forecasts and models have been”, he underlines. He stresses that little of the bailout money given to Greece under the 2 loan programs has actually gone to the Greek economy. In the ongoing ‘Greek Tragedy saga’ he describes the measures demanded by the creditors on Greece as ‘punitive’ and having nothing to do in reality with money. The economist juxtaposes the idea of democratic legitimacy with the eurozone project. “Isn’t Europe all about democracy”, he wonders. On the question of his stance on the Referendum he says in no uncertain terms that a ‘yes’ vote would mean more ‘depression almost without end’, while a ‘no’ vote would at least give the country the prospect to control its future.