Inadequate expansionary monetary policy by the ECB was the reason why deficits & debts ballooned in Southern Europe following the financial crisis. In contrast to what the US and UK central banks did which embraced aggressive QE avoiding recession in spite of, in one instance ( the UK), contractionary deficit reduction. In every respect therefore, ECB inaction was also largely to blame for Greece's predicament. Unprecedented, mostly tax induced austerity, coupled with tight money conditions was a recipe for a perfect depression. Now that the ECB has finally decided to act its in Greece's best SHORT TERM interests to compromise with the institutions and aim to accept lenders terms, this way it will ride the expansionary monetary tide and may thus alleviate a large part of the continuous fiscal contractionary policy imposed upon it.
Posted by Unknown at 6:13:00 pm