Schroders' chief economist Keith Wade has warned the latest Greek bailout is "doomed to fail", while delivering a more positive outlook for the global economy after the latest round of stimulus.
Wade is concerned over the Greek debt swap negotiations dominating the headlines, warning it looks certain to fail and lead to a default. "In the euro-area the latest bailout of Greece is doomed to fail, being based on the mistaken belief that austerity can create growth," said Wade. "Consequently we attach a high probability of Greece leaving the euro in 2013 following a change of political direction after fiscal slippage and increased demands for yet more austerity," he added. However, he is more optimistic on global growth, noting data and further policy easing worldwide should ...
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