The GREECE Crisis is becoming much more worse day by day. Recently, many economist started comparing this crisis with Argenitina's Default Crisis (1999-2002).
Recently IMF and European Finance Ministers Agreed to bail out Greece. Many countries were Unhappy with the Decision of IMF, since, Greece is not facing the Balance of Payment problem, rather, It faces huge Fiscal Debt. Many Economist feel that whether this bail out package is really worth? Whether this will stop the Greece from becoming Default? Now, Greece have also started adopting austerity measures, but, whether it will work? and more importantly whether Greek will walk out of EURO?
Recently IMF and European Finance Ministers Agreed to bail out Greece. Many countries were Unhappy with the Decision of IMF, since, Greece is not facing the Balance of Payment problem, rather, It faces huge Fiscal Debt. Many Economist feel that whether this bail out package is really worth? Whether this will stop the Greece from becoming Default? Now, Greece have also started adopting austerity measures, but, whether it will work? and more importantly whether Greek will walk out of EURO?
Well recently, Paul Krugmen in his article in NY Times (dated 6th May 2010, said that " The bad news is that Greece’s problems are deeper than Europe’s leaders are willing to acknowledge, even now — and they’re shared, to a lesser degree, by other European countries. Many observers now expect the Greek tragedy to end in default; I’m increasingly convinced that they’re too optimistic, that default will be accompanied or followed by departure from the euro".(For Full Article you can read - http://www.nytimes.com/2010/05/07/opinion/07krugman.html)
We need to wait and see whether the Greece bailout package is worth or it will default!!
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