Grexit will lead to the biggest “haircut” of wages in Greece’s history, was the stern warning issued on Wednesday by Nobel Prize-winning economist Christopher A. Pissarides.
In comments that will probably generate howls of “neo-liberal” by detractors, the distinguished UK-based academic and ethnic Cypriot also said that a SYRIZA government proposal to raise the minimum monthly wage in the recession-plagued country will lead to an increase in unemployment.
He projected that Grexit, or its derivities of “Grexident”, “Grexodus” etc., could result in up to a 60 percent cut in wages.
“Grexit now would be a huge mistake. It would mean the biggest haircut of wages ever, because most products that we consume in Greece are imported, and their prices will be in euros.”
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