The euro, the drachma and Greece: Limited options in an impossible situation

The final agreement between Greece and the Eurogroup is a disappointment for anyone who held high hopes that Greece would have taken away more than a mere extension to the existing deal.

In the end, Greece gained very little and the continued austerity will do very little to close the growth gap. It is difficult to see anything short of a total capitulation. Perhaps the view Greece could walk out with a victory was naïve in light of the formidable power of the Eurogroup and its financial allies.

How could this have happened?