[If there is a single lesson that should have been learnt from - TopicsExpress

[If there is a single lesson that should have been learnt from Greece’s failed economic program it is that severe budget austerity within a euro straitjacket simply does not work. For without the ability to devalue its currency so as to boost export growth or the tourist sector as an offset to the negative impact of fiscal tightening on domestic demand, the country’s economy runs the real risk of entering a debilitating deflationary spiral. This is particularly the case in the context of a weak banking system that is confronted with increased amounts of non-performing loans and that restricts credit to households and companies.]

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