An interesting piece in the NYTIMES:
The Greek strategy is summed up in the article as
follows:
“There may be a
method to Mr. Varoufakis’s madness. He calls himself an “erratic Marxist,” and
is putting his extensive study of game theory to the test in the real world.
With a “nothing-to-lose” approach, he is wagering that Germany and the rest of
Europe will eventually make concessions, rather than risk a Greek departure
from the euro and a new wave of contagion. As Mr. Varoufakis, a trained
economist, has written, “it may be rational to act irrationally.””
Meanwhile, the creditors (troika – European Commission/IMF/ECB;
Germany also matters enormously) worry about setting a bad precedent:
“… the main
guardians of the euro, these officials are loath to bend the rules for Greece,
lest a troubling precedent is set for other nations that might want to ditch
their own austerity programs. Still, they fear a messy Greek departure from the
euro and the effect it would have on the common currency zone.”Game of Chicken