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Why can't Greece just default on its debt? When you can't paper over your insolvency with currency devaluation, you can still be insolvent but you have to deal
by inigyou 2mo ago
Why can't Greece just default on its debt? When you can't paper over your insolvency with currency devaluation, you can still be insolvent but you have to deal with it in more overt ways.
- mike_hearn 2mo agoThey could but then nobody would lend them more euros. If you default in a situation of structural deficit where you can't print more money, then the only alternative is instant spending cuts to balance the budget.