If el Erian was giving advice to our finance minister he would be completely ignored as indeed his advicve has been completely ignored. Concepts such as parking the leaders and administrators of a failing econony in a silo such as Croke Park for 4 years while the real economy rots on the vine would be ridiculed by el Erian who has consistently said that Europe has mistaken what is happening as a cyclical economic cycle when in reality Europe is caught in in the grip of a crisis that requires structural changes. The type of structural changes envisaged most certainly do not include propping up government workers with borrowed money while hoping that the “cyclical recession” in the real economy recedes, so as to be able to carry the burden once more without borrowing.
I have used the metaphor of waiting for the incomingc economic tide in the hope that it will raise all boats, including those that deserve to remain stuck in the mud cf. the thread on public service “reform” which has died on the vine.
“according to a person with knowledge of Pimco’s finances who spoke on condition of anonymity because the firm, a unit of Allianz, the big German financial company, doesn’t disclose compensation”.