Who is responsible for ‘grexit’?
One of the most unfortunate neologisms of the European financial crisis has to be "Grexit," the now-ubiquitous term referring to a possible Greek exit from the eurozone. (I’m pretty fond of PIIGS, on other hand.) I was curious about who had first used the term. This FT Alphavillle post from Feb. 7 would seem to ...
One of the most unfortunate neologisms of the European financial crisis has to be "Grexit," the now-ubiquitous term referring to a possible Greek exit from the eurozone. (I'm pretty fond of PIIGS, on other hand.) I was curious about who had first used the term. This FT Alphavillle post from Feb. 7 would seem to have the answer:
One of the most unfortunate neologisms of the European financial crisis has to be "Grexit," the now-ubiquitous term referring to a possible Greek exit from the eurozone. (I’m pretty fond of PIIGS, on other hand.) I was curious about who had first used the term. This FT Alphavillle post from Feb. 7 would seem to have the answer:
Grexit being, of course, a Greek exit from the eurozone. (Also, an app for archiving and sharing Gmail threads. Bummer for them.)
The term comes from Willem Buiter and Ebrahim Rahbari at Citi, who are now leaning towards the “let them leave” argument:
First, we raise our estimate of the likelihood of Greek exit from the eurozone (or ‘Grexit’) to 50% over the next 18 months from earlier estimates of ours which put it at 25-30%. Second, we argue that the implications of Grexit for the rest of the EA and the world would be negative, but moderate, as exit fear contagion would likely be contained by policy action, notably from the ECB.
So it appears Citibank is to blame. On the other hand, maybe an unpleasant sounding word is appropriate for that scenario.
Joshua Keating was an associate editor at Foreign Policy. Twitter: @joshuakeating
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