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US economist's Grexit plan attacked by academics

Greek researchers from US institutions hit out at controversial plan drawn up by University of Texas economist

Published on
August 1, 2016
Last updated
February 16, 2017
greece, greek flag, european union

More than 20 Greek academics have written to a US university to complain about a faculty member鈥檚 鈥渟ecretive鈥 involvement with Greece鈥檚 蹿辞谤尘别谤听finance minister Yanis Varoufakis.

Some 23 university professors and researchers put their names to a letter concerning James K. Galbraith, an economics professor at University of Texas at Austin, following revelations about a secret "Plan X" contingency plan he helped to draw up in case of Greece鈥檚 exit from the eurozone in 2015, according to the .

Professor Galbraith 鈥 son of the influential left-wing economist John Kenneth Galbraith, who died in 2006 鈥 acted as a senior adviser to Mr Varoufakis last year when Greece came close to leaving the euro.听

Disclosures in Professor Galbraith鈥檚 new book, Welcome to the Poisoned Chalice, about plans to establish a parallel banking system in case Greece鈥檚 bailout negotiations with lenders failed have provoked anger.

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According to the letter from faculty members from several US universities, including Stanford, Harvard, Tufts and Boston University, which was sent to Texas president Gregory L. Fenves, Professor Galbraith鈥檚 plan amounted to a 鈥渕onetary and military coup鈥 that would involve 鈥渦ndermining democracy鈥 via the declaration of a state of emergency rule.

鈥淗is plan to use the armed forces is especially shocking, because the Greek Constitution, drawn up after seven years of military dictatorship, only defines the police as responsible for maintaining public order,鈥 says the letter.

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鈥淏y law, the exclusive task of the armed forces is to protect the country against external enemies,鈥 it adds.

It also criticised Professor Galbraith鈥檚 alleged regret that Plan X did not take place, even though this would have included 鈥渇inancial measures [such as] nationalization of the central bank (by law independent of the government)...[the] closure of banks and a system of promissory notes (IOU鈥檚) for public expenditure payments until a new currency was printed鈥.

鈥淲e believe that participation in the design of undermining democracy and social class in any country is contrary to the ethical standards expected of the faculty of a prestigious university,鈥 the letter adds, claiming that Professor Galbraith 鈥渢arnished the reputation of the University of Texas at Austin and the L.B. School Johnson School of Public Affairs, and the decision to publicly rant about it creates further doubts about his ethics and judgment鈥.

鈥淭he academic freedom of expression must be in accordance with appropriate ethical conduct and fundamental democratic rules,鈥 the letter concludes.

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jack.grove@tesglobal.com

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