Tuesday, May 18, 2010

Saving Greece

A historical analogy that could make interesting reading for the Greeks: Argentina quickly returned to growth after dropping its dollar peg and defaulting on its debt.

The alternative is a decade of grinding deflation. And Greece is definitely not Japan, so it's hard to see the Greeks resigning themselves to austerity for such a long period.

Trouble is, if Greece goes, the story probably doesn't stop there.