Greek Gamble

The latest Greek bailout is shaping up as a race between a fast shrinking economy and better access to credit and lower interest payments that hopefully encourage private sector growth. The problem is absent rapid growth in exports and tourism, Greece will have a hard time paying its bills as the forced internal devaluation–lower wages–makes its economy more competitive but shrinks it thus raising its debt to GDP ratio.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.