Posts
NYTIMES/ News Analysis/ Greece will suffer years of austerity with its new $146 billion IMF/EU bail-out. "But there are serious questions about whether the deep cuts in salaries and benefits the agreement calls for are politically sustainable overtime, even as deflation will make it impossible forGreece to grow its way out of debt. There is a consensus that the Greek economy is broken needs major structural reform..."“How can Greece grow out of its debt if there is deflation?” asked Jean-Paul Fitoussi, a professor of economics at the Institut d’Études Politiques in Paris. “Deflation increases the debt burden, so we are following this virtuous circle that is bringing us toward hell. Economics has nothing to do with virtue, which can kill an economy.”
03 May 2010
EUROZONE: Greece Is "Functionally Bankrupt"; Faces Deflation.
NYTIMES/ News Analysis/ Greece will suffer years of austerity with its new $146 billion IMF/EU bail-out. "But there are serious questions about whether the deep cuts in salaries and benefits the agreement calls for are politically sustainable overtime, even as deflation will make it impossible forGreece to grow its way out of debt. There is a consensus that the Greek economy is broken needs major structural reform..."“How can Greece grow out of its debt if there is deflation?” asked Jean-Paul Fitoussi, a professor of economics at the Institut d’Études Politiques in Paris. “Deflation increases the debt burden, so we are following this virtuous circle that is bringing us toward hell. Economics has nothing to do with virtue, which can kill an economy.”
