I was thinking about the Greek crisis. As I understood it they were given extensions and more loans. But what would happen if that option isn’t available? Time for a war?
In: Economics
I mean, defaulting on your debts understandably makes people pretty wary of lending to you.
With respect to governments. Most that default end up having to put through serious spending reforms and really signal that their fiscal house is in order for several years before they can borrow at reasonable interest rates again.
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