Krugman advises against ‘nightmare’ euro exit

Economist and New York Times columnist Paul Krugman spoke at the Athens Concert Hall on Friday.

Although Krugman was critical of the way that the eurozone has handled Greece’s crisis, he advised the government not to consider an exit from the single currency. He said that such a move would be “nightmarish.”

“The transition cost would be enormous,” he added.

Krugman suggested that Greece should accept a deal that would allow it to achieve a smaller primary surplus, although he added that some of lenders’ demands for structural reforms are “just demands for more austerity.”

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