Myths and self-deceptions about the Greek debt crisis

Abstract

The long-running Greek public debt crisis has been accompanied by an information war that has obscured many important aspects of what has occurred. The misconceptions, self-deceptions, and myths associated with the crisis have been at least partly responsible for the obviously inadequate response to the crisis that has not only damaged the economy and society of Greece, but has also harmed the euro zone project. I argue against seven such myths about the effects of default, the primary cause of the crisis, the likely effects of an exit from the euro zone, the bargaining power of the Greek government in its negotiations with the EU/ECB/IMF troika, and other related issues. I also discuss the context of the wider retreat of democracy in the European Union and its future prospects.