Meanwhile in Greece
Nothing we have to worry our little heads about because “the United States will never, ever turn into Greece.” Matthew O’Brien explains why, in this executive summary:
[Things are about to get very wonky below, so my editor forced me to sum up things here. The two main conclusions are: (1) For countries that can borrow in their own currency, like the U.S., higher debt doesn't clearly lead to higher interest rates. (2) For countries that don't control their currencies, like Greece, it's borrowing too much from foreigners (NOT borrowing too much in general) that clearly leads to much higher borrowing costs ...]
Okay then.
---
Previously on The Billfold
---
---
---
…which is why we should be borrowing and spending as much money as possible right now to stimulate the economy. It’s textbook good macroeconomic policy. (Maybe Japan’s central bank bought up all the macro textbooks as part of their fiscal stimulus and that’s why Congress and the ECB are so clueless?)
Oh and in other news, was I hallucinating or was there a post linked here recently where Greece was described as “the poorest country in Europe?” Because it’s not even close. Greece’s per capita GDP is ~$25,000, almost double the actual poorest EU member (Bulgaria) and 20 times higher than the actual poorest Euro country, Moldova. Also they work longer hours than any other EU country.
@stuffisthings Who cares if they work longer hours? Are they using those hours productively? Judging by the last few years in that country, I think not. You can’t spend like a fool, neglect your debts, and then get pissed off when other countries (i.e. Germany) are reluctant to keep the spigot open. Also, I don’t think I would want to emulate Japan’s economy? Lost decade(s), anyone?