Expert assessment on how #Greece got into its current financial mire: on.rand.org/T5RLt http://t.co/fsG3dYFFMb—
RAND Corporation (@RANDCorporation) October 06, 2015
The Greeks initially did a fine job in squeezing huge subsidies and debt write-offs! The Irish played by the rules, guaranteeing bank bond holders to which they had no obligation, but got screwed.
Through history, sovereign defaults come in clusters. Is Greece the start of one? on.wsj.com/1V3XkxR via @WSJhttp://t.co/Oy9aMPoHrt—
Greg Ip (@greg_ip) July 15, 2015
Arellano, Conesa, and Kehoe explain in Chronic Sovereign Debt Crises in the Eurozone, 2010–2012 that the post-GFC recession in many Eurozone countries created an incentive to gamble for redemption.
This gamble for redemption is betting that the post-2008 recession will soon end.
- If Greece sold more bonds to smooth government spending in the interim, and if the Greek and EU economies recover, the stronger revenue growth will pay off the enlarged Greek government debt.
- Under some circumstances, this policy is the best that a government can do for its country, but it…
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Utopia, you are standing in it! 
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