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Austerity is not a "problem", it's simply the only remaining option when you run out of other people's money.
by nradov 2mo ago
Austerity 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.