Published on Wednesday, March 27, 2013 by Common Dreams
Economist says best thing nation coud do is save itself the pain by making immediate exit from the Eurozone
Asked to put aside the obstacles of political reality or feasibility and simply offer his unadulterated advice to the nation of Cyprus, Nobel-winning economist Paul Krugman spoke bluntly and plainly by agreeing to say what he would do if it was up to him.
Students take part in an anti-Troika protest outside the Presidential palace in Nicosia March 26, 2013. (Photo: Reuters/Yorgos Karahalis)”Cyprus should leave the euro. Now,” Krugman said on Tuesday.
As the banks in Cyprus remain closed and public opposition to the bailout deal being orchestrated grows, Krugman explained why he (and many others) support the idea of an exit.
“The reason is straightforward,” He continued. “Staying in the euro means an incredibly severe depression, which will last for many years while Cyprus tries to build a new export sector. Leaving the euro, and letting the new currency fall sharply, would greatly accelerate that rebuilding.”