A cure to modern Greek tragedy

Comments on Jamus Lim “The Modern Greek Tragedy Follows a Classical Script”, 20/05/2010, http://blogs.worldbank.org/prospects/the-modern-greek-tragedy-follows-a-classical-script
There is a likely nice policy response to the current Greek woes.

It requires a temporary trade measure to change the relative prices between Greek and other euro member countries, similar to an effective devaluation of a country's currency.

It is an innovative thinking, targeting a real world problem. Much better than Paul Krugman's conventional but empty argument.

International financial and economic agencies need to be innovative too. Otherwise, they will be helplessly reactive and ineffective in their policy responses and recommendations.

When a new issue arises, one needs to study its characteristics and find a solution. If the existing theories and policy tools can't address the issue, then one needs to go one step further and create a new theory and policy tools to do it. It is not good enough to just to say that existing theories and policy tools don't work and therefore it is an unsolvable problem.

See a couple of blog articles for this and hope they are helpful to World Bank and IMF staff and researchers

http://mrlincolns.blogspot.com/2010/05/policy-response-to-greek-dilemma.html
http://mrlincolns.blogspot.com/2010/05/paul-krugman-on-euro-union-is-wrong.html