Is Greek Debt Really Unsustainable?

by Andrew Watt

20.01.2015 / Institut für Makroökonomie und Konjunkturforschung (IMK), Januar 2015

Greece will go to the polls on January 25th and everybody from German conservatives to Greek leftists seems to agree: Greek public debt is unsustainable. A haircut on investors and some form of partial default – more politely known as debt restructuring – is the only answer. On the face of it, this is understandable.