G. Provopoulos, then governor of the Bank of Greece, in 2008–2009, after the country’s default was officially declared, the figures he provided regarding the deficit and the debt were disputed in the years that followed. Years later, he wrote that he was presenting reality as it was unfolding.
In the central bank’s annual report on the economy, G. Stournaras states, among other things: «The rise in consumer prices exceeded the increase in energy costs and, consequently, inflation is to some extent attributable to higher corporate profits.».
Are you just now realizing this, my dear Stournaras, or do you see the ship taking on water and are you throwing out a lifeline?;
Throughout the Bank of Greece’s analysis, it is clear that the main cause of high prices in Greece is «greed-driven inflation.».
Mr. Stournaras refers to the risks facing the Greek economy, but only in small doses. He’s a master of the drip-feed. «Despite the consistently positive assessments of the Greek economy… there is no room for complacency,» he tells us.
His findings do not align with the government’s more optimistic estimates (budget), but even this is done with great skill and particular care. Is this yet another presentation of reality as it… unfolds? We’re holding our ground on the «boat,» not just drifting out to sea.
Inflation affects not only households but the economy as a whole. Inflation has a negative impact on consumption, investment, production, and ultimately on society.
It has a negative impact on growth. What Mr. Stournaras isn’t telling us are the causes. And among those causes is the current government’s policy. «You can’t have your cake and eat it too.»
His attention is focused on the banks. That makes sense, since he is responsible for their operations. But the issue is the overall state of the economy. And since we’ve paid dearly for the one-sided focus on bank profits, it would be wise for everyone to face the truth head-on before it’s—once again—too late.
Panagiotis Koumoundouros
Co-ordinator of SYRIZA-PS Laconia
