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Greece could have fixed their problems by cutting spending and collecting more taxes (not necessarily higher taxes, but actually collecting the taxes that were
by nradov 2mo ago
Greece could have fixed their problems by cutting spending and collecting more taxes (not necessarily higher taxes, but actually collecting the taxes that were owed). Currency inflation was never necessary.
- iknowstuff 2mo agoI think they did? At the cost of very slow recovery, which I think is the problem with austerity measures.
- nradov 2mo agoAusterity is not a "problem", it's simply the only remaining option when you run out of other people's money.
- iknowstuff 2mo agoCountries can inflate their debt away at the cost of eroding savings and new borrowing becoming more expensive, no? https://www.statbureau.org/en/greece/inflation-charts-yearly https://www.statbureau.org/en/greece/inflation-charts-yearly
- nradov 2mo agoCountries can't push that approach very far before new borrowing doesn't just become more expensive, it becomes effectively impossible.
- realityking 2mo agoCountries with poor credit struggle to issue debt in their own currency. Being able to inflate your debts away is a privilege of the rich.
- imtringued 2mo agoThis is a very strange perspective when the simplest solution is to introduce a demurrage euro for automatic equilibrium in the Eurozone. I know you permanent money people are keen on a dog eat dog world where you trust no one and see everyone around you as a competitor to defeat.