EU leaders are taking what Business Week calls "unprecedented" measures--spending $962 Trillion in the process--to keep sovereign debt in Euro zone countries from inflicting more damage to the European economy. So there is little doubt they have taken the Greek crisis seriously. But there remain a wide range of opinion among Europe's citizens on how much they and their nations should be on the hook for fixing other nations' debt issues.
Economists Carmen Reinhart and Kenneth Rogoff argue that the Greek crisis provides valuable lessons for people outside of Europe. In the Washington Post, they outline 5 Myths about the European debt crisis:
1. This is a new type of crisis.
2. Small economies such as Greece can't launch major financial turmoil.
3. Fiscal austerity will solve Europe's debt difficulties.
4. The euro is to blame for Greece's financial woes.
5. It can't happen here.
Read their breakdown of these myths here.
Posted
05-10-2010 3:24 AM
by
Graham Griffith
Filed under: bailout, GDP, debt, washington post, european union, European economies, Kenneth Rogoff, Carmen Reinhart, Greece, austerity measures, debt crisis, 5 myths about the european debt crisis