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Europe (with ECB's support if necessary) won't let Greece default.
by proemeth 17y ago
Europe (with ECB's support if necessary) won't let Greece default.
- gaius 17y agoCan you say moral hazard much? The EU really doesn't need to set a precedent for the mismanaged economies of the south dumping their debt on the strong economies of the north.
- cabalamat 17y agoI'm sure the ECB have that uppermost in their minds. OTOH, I'm sure many Greek politicians would like the Germasn and French to pay their debts.
- eru 17y agoThat's forbidden by the EU treaties (probably Maastricht treaty, or so). The IMF could help. But it would be humiliating.
- yungchin 17y agoThat's nice rhetoric, but the fact is that there's no us and them, there's only us. We've had a monetary union for about a decade now - we opted-in on sharing each others pains. Krugman thinks the euro was a bad idea to begin with, you might find that interesting to read: http://krugman.blogs.nytimes.com/2010/02/05/the-spanish-tragedy/ http://krugman.blogs.nytimes.com/2010/02/05/the-spanish-trag...
- gaius 17y agoTrue, but the Greeks opted in on fiscal discipline too... Oh, wait.