Thursday, September 14, 2017

Why was Greek's high debt so bad for the Greek economy?

Other countries during WWII had much higher debt to GDP ratios without being on the verge of economic collapse. In fact, several countries spent a lot after WWII making the debt even larger.

How would Greece's financial situation been different if they had their own currency. Would they have not been able to simply create their own money in that scenario like banks do when they grant mortgages?

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