LSE's Pissarides Feels Euro Zone Can Survive Grexit

The video discusses Greece's economic challenges, focusing on the lack of investment and negative economic sentiment. It highlights the difficulties in jumpstarting the financial system and the role of institutions. The discussion also covers government reforms, political instability, and the potential impact of a Grexit on Europe. The video emphasizes the need for resolving uncertainty and the challenges faced by Greece in achieving economic recovery.

What is one of the main challenges in reviving Greece's financial system?

• High domestic demand

• Strong investor confidence

• Isolation of European banks from the Greek market

• Excessive government spending

What term is used to describe the lack of motivation for investment in Greece?

• Crisis fatigue

• Financial enthusiasm

• Market exuberance

• Economic optimism

Why are investors hesitant to invest in Greece?

• Stable political environment

• Strong economic growth

• Lack of government reforms

• High levels of positive animal spirits

What is the main reason against a Greek exit from the Eurozone?

• It would lead to Greece's collapse

• It would increase investor confidence

• It would strengthen the Eurozone

• It would benefit Greece

How has the ECB prepared for a potential Greek exit?

• By reducing financial regulations

• By encouraging more Greek debt

• By isolating itself from the Greek market

• By increasing interest rates