經濟學家

Time for economists to eat humble pie . . . again

The euro has not collapsed in value. The eurozone has not broken up; Greece has not left nor been kicked out. For someone like myself, a careful reader of the Financial Times and other media, this is a bit of a surprise. I remember last year an avalanche of predictions of the coming of Armageddon. Greece certainly could not survive and contagion would pull other weak economies down.

Economists are no more likely always to agree than any other experts but there was a remarkable unanimity as the crisis unfolded: Europe was on the edge of the abyss; bold and rapid action was needed from strong governments.

Against this storm stood a remarkable woman, Angela Merkel, insisting no quick fix was available. She has been proved right. Steady work and steely brinkmanship have carved out for Greece the biggest ever writedown of government debt, in a sophisticated and complex deal.

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