The ratio of public debt to GDP is amazing when it is decomposed.
GDP since 2009 was down by more than 20%. During this period the debt has not grown so much.
In other words, the profile of the ratio of Public Debt to GDP reflects mainly the drop of the economic activity. This is the consequence of the austerity policy that was imposed to Greece by the troika. (See here for the Greeks’ effort)
We can then understand that the debt relief discussion that will come after the agreement on yesterday’s proposals by Tsipras is just a counterpart of this persistent austerity.
Source Paul Krugman (see here)
On the same topic
Reflections on pensions in France
Discussions in France about retirement often give the impression that pensions have to correct a large part of the inequalities of the working period.They suggest an at least partial dissociation…
A robust French Economy despite the strike
The Markit survey for France does not suggest in December an inflection that can be linked to the social movement. The economy’s capacity to adapt is stronger than we imagine…
Brexit will take place on January 31
The British vote validates the choice of Brexit and the exit from the European Union on January 31, 2020. Boris Johnson is free to define his strategy. Boris Johnson’s huge…