Role of Financial Innovation in Greece’s Predicament
By Ani Vallabhaneni
The New York Times recently published: Wall St. Helped Greece to Mask Debt Fueling Europe’s Crisis
In this story, NYT explores in-depth on the role of the private-sector and innovative financial instruments in providing Greece with timely credit to address a short-term cash shortfall, but ultimately putting the country on the wrong path.
This topic is especially appropriate for our class today on the topic of Development Finance with Dilip Ratha, Lead Economist at the World Bank and author of Innovative Financing for Development.
The NYTimes article reminds me of Confessions of an Economic Hitman (mediocre writing style but outstanding content), especially considering Greece is on the brink of slipping back down the ladder of poverty if the bailout fails.
Responsible use of innovation is always a dilemma and often the problem is our inability understand the real long-term impact.As Dilip talks about the innovative financial instruments he develops and supports for development finance, it would be interesting to get his perspective on how he tries to get a handle on these issues.
