Terry Chapman: Greece and the Politics of Lending

Terry Chapman on the LSE Blog: Greece illustrates how the politics of lending can undermine its effectiveness

Conclusion: “Our study indicates that the politics of lending can sometimes undermine its effectiveness, and this helps to explain why success is so elusive in important cases. In the Greek case, it will be difficult to rebuild the confidence of a market shaken by several failed attempts at stabilisation, and it will probably require another round of debt relief.”