Sustainability depended not just on the debt level but on the future course of Greek growth. Though on issues like the fiscal multiplier the IMF had come around to a more “liberal” view, when it came to long-run economic growth the Fund cleaved to the old religion. To raise its growth rate Greece must undo labor market regulation and free restrictive business licensing. This required detailed and highly intrusive “supply side reform.”37 Furthermore, the Greek government could always raise money through privatization sales. To implement such measures was painful for any government. For a Left
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