Greek Game Theory Real-Time: My Big Fat Greek Divorce
By The Economist, June 18, 2015
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Some people, including possibly Mr Tsipras, have concluded that the price of Grexit is so high that Greece can count on the euro zone giving ground at the last minute. But that is reckless. If the euro is to endure, its rules must be enforceable. So long as the monetary union is forged between sovereign states the principles of irrevocability and enforceability are contradictory. Yet you can be sure there is a limit to what the euro zone will tolerate—even if nobody knows where it lies.
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Most Greeks want to stay in the euro. But their politicians still look to Berlin for salvation, rather than to reform at home. Greece must understand that, if this does not change, the creditors will lose patience. Avoiding divorce would be better for everyone. But this marriage is not worth saving at any price.
