Apropos the article "Why Grentry augured Grexit" (July 6), the writer summed up Greek economy's tryst with the euro zone nicely. An ultra left-wing party, like that of Alexis Tsipras, coming to power was a political-economic risk, not factored in sufficiently by the troika - the European Commission, the European Central Bank and the International Monetary Fund. Or, maybe, they were taking those risks to try and strengthen their relative positions in comparison with other regional trading blocks. Economic integration calls for a high degree of collective responsibility. Even in the most developed nations, measures aimed at equity and redistribution result into promises of 'free lunches' for the vast majority. This soon proves to be unsustainable. In integrated economic environments, the margin of error is very small because monetary sovereignty is given up entirely in lieu of market access and currency stability. This is according to the conventional wisdom of international economics, popularly known as 'impossible trinity'. It means policymakers can at any given time choose only two among three objectives of regional integration, exchange stability and monetary sovereignty.
Tallury Syama Sundar, Hyderabad
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201 · E-mail: letters@bsmail.in
All letters must have a postal address and telephone number
