This Nobel Prize-winning economist says Greeks should vote ‘No’

By John KellContributing Writer and author of CIO Intelligence
John KellContributing Writer and author of CIO Intelligence

    John Kell is a contributing writer for Fortune and author of Fortune’s CIO Intelligence newsletter.

    HONG KONG-ECONOMY-FINANCE-FORUM
    Nobel Prize-winning economist Paul Krugman delivers a speech at the Asian Financial Forum in Hong Kong on January 20, 2015. The Asian Financial Forum 2015 is held under the theme "Asia: Sustainable Development in a World of Change". AFP PHOTO / Philippe Lopez (Photo credit should read PHILIPPE LOPEZ/AFP/Getty Images)
    Photograph by Philippe Lopez — AFP/Getty Images

    Who should the Greek people listen to when they vote in a referendum on their country’s international bailout: international leaders, or New York Times columnist Paul Krugman?

    Here’s what is at stake: Greece’s Prime Minister Alexis Tsipras has announced a July 5 referendum on the nation’s creditors’ proposals to resolve its debt crisis, which has plagued the country for several years now. A “yes” vote would back the bailout measures by international creditors, while a “no” vote would likely lead Greece to exit the eurozone, making it the first nation to ditch the single currency and throwing the European nation into uncharted territory.

    Noble Prize-winning Krugman says he would vote “no,” arguing two reasons for that case. Within the first point, Krugman acknowledges that leaving the euro is scary, but could result in an opportunity for the nation to rethink how it can tackle its woes and that a devaluation of its currency could pave the way for a recovery, as such a move has helped other nations many other times in the past. Secondly, the economist says a yes vote essentially is a move to replace the Greek government.

    Unsurprisingly, Europe’s top leaders don’t agree with the “no” vote crowd. Jean-Claude Juncker, the president of the European Commission, has aimed to persuade Greeks that the budget cuts and policy overhauls their government has rejected are good for the nation. He says a “no” vote means the nation “is saying ‘no’ to Europe.”