Despite the brain drain, Greece still has a highly qualified human capital (mostly educated in UK, European and US universities), which is young and dynamic. Greece should resemble Israel, for instance, in terms of start-up high-tech companies, a sector in which Israel has shown the way as a true champion.
My view is that this economy is capable of generating the type of favorable outcome that I have just sketched, but, as in any period of transition, policymakers must be aware of heightened risks on all sides of the forecast. I must emphasize that these views are my own and not necessarily those of my colleagues on the Federal Open Market Committee (FOMC).