Greece Should Go Default


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Introduction – Greece Should Go Default

The 21st century has reported numerous economic challenges in the global scene. This has affected nearly all nations following the great depressions and economic recessions which slow down and doom economic growth. The management of the global economy by international bodies like the IMF and The World Bank has also been a great challenge. This is in relation to the enormous nature of the world economy as well as the reluctance of individual nations to cooperate. The case of Greece has been one of the outstanding economic puzzles which has raised controversy in the global platform.

The ever increasing public debt of Greece is the major challenge to the country, whereby it is un-payable. The concern on whether Greece should pay or default has been a question of great attention.

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The macro economic aspects of employment and investment will also been facilitated by abandoning the euro as well as pressure for austerity. A point worth of consideration is that defaulting payments on debts is not fully perfect in the sense that it has some potential negative effect. As noted by Lynn (2010), Greece will temporarily loose access to international credit markets. This is however not a disaster since it will only work for a while but its better of to default now than adopt the austerity measures which are not sustainable.

            Conclusion

In summation, it is evident that Greece should go default. The country should be bold enough and halt the payment of the public debts. This is in consideration of the deteriorating economy, high insolvency and ever deepening depression. By defaulting payments and going its way, Greece will have the freedom to choose and administer favorable policies on economic growth. The lost competitiveness of the country will be regained thus attaining the lost fame of the country.

References

Borio, C. et al. (2011).International Banking and Financial Market Developments. Business

 Communication Quarterly. Vol 10 (13), P. 127-135.

Fotopoulos, T. (2010). Economic Restructuring and the Debt Problem: The Greek Case.

 International Review of Applied Economics, Vol 6 (1), P. 38-64.

Lynn, M. (2010). Bust: Greece, the Euro and the Sovereign Debt Crisis. London: Routledge.

Tanous, P. et al. (2011). Debt, Deficits, and the Demise of the American Economy. New York:

 Prentice Hall.

Tayfur, M. (2003). Semi peripheral Development and Foreign Policy: The Cases of Greece and

 Spain. Business Communication Quarterly Vol 11 (3), P. 223-235.