Teaching PIIGS to Fly
If Greece does not restore fiscal sustainability and competitiveness, a partial bailout by the EU and the ECB will become necessary in order to avoid the risk of contagion to the rest of the euro zone. That is why a credible IMF program that ties financial support to the progressive achievement of fiscal and structural reform goals is the right solution.
https://prosyn.org/JBjG798
NEW YORK – Greece’s fiscal problems are, as I have argued many times, but the tip of a global iceberg. For the next installment of the recent global financial crisis will be rising sovereign risk, especially in advanced economies that run massive budget deficits and accumulate large stocks of public debt as they socialize private financial losses in order to revive economic growth.