Former IMF official says Greece should default and drop the Euro

July 7, 2011

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(AP/Petros Giannakouris)
A Greek woman protests an increase to civil servants’ working hours, a cost-cutting measure taken by the government.

Eurozone finance ministers and economists from around the world now argue over the best solution to Greece’s spiraling economic crisis. Some want more rigorous austerity measures, while others believe Greece should default on its debt and abandon the Euro. Desmond Lachman, former deputy director at the International Monetary Fund in its Policy Development and Review Department, tells us why he favors the latter. Desmond is now Resident Fellow at the American Enterprise Institute. His most recent article on the Greek debt crisis is “A Tale of a Euro Exit Foretold” in The American.