Mario Draghi and the Greek “accident”

Posted by on Jun 2, 2015 in Blogposts, Latest News, Writing | No Comments

In Greece’s negotiations with the eurozone, the man to watch is Mario Draghi, head of the European Central Bank, not Tsipras or Merkel. Even if Greece should default on a payment to the creditors, it still cannot be expelled from the eurozone. The only way that could happen would be if its banks failed, and the only person who could bring that about is Mario Draghi by not providing sufficient liquidity to the Greek banking system. That may be the “accident” that many are fearing. Look for my article “Conflict in the Eurozone” in Duke University’s Mediterranean Quarterly, which will appear this summer.