Wednesday, October 13, 2010

Greece and the fiscal crisis in the Eurozone

VOX
October 12, 2010

The saga of the Greek public finances continues. But this time, Greece is not the only country that suffers from doubts about the sustainability of its fiscal position. Quite the contrary. The public finances of most countries in the Eurozone are in a worse state today than at any time since the industrial revolution, except for wartime episodes and their immediate aftermaths. And the problems are not confined to the Eurozone, extending to other EU member states, like the UK and Hungary, Japan, and the US. This column introduces a new CEPR Policy Insight by Willem Buiter and Ebrahim Rahbari that explains how this situation came about and how it is likely to evolve during the rest of this decade.

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