Willem Buiter gives Citi's Global Economics View: Sovereign Debt Problems in Advanced Countries

From the summary–

Sovereign Debt Problems in Advanced Industrial Countries

 Most advanced industrial countries in worst ever peacetime fiscal shape
 Sovereign default can become the least bad solution for a country
 Sovereign default risk outside Greece low but non-negligible
 Most countries will eventually choose a ”˜fiscal pain’ solution
 Debt restructuring, possibly with haircuts, likely to be part of the ”˜fiscal pain’ package
 Inflationary solution to public debt burden highly unlikely in Europe, unlikely in US
 Euro Area needs mutual fiscal insurance mechanism to survive and prosper
 Restoring fiscal balance will be a drag on growth for years to come for advanced industrial countries

The whole thing (a 68 page pdf) is here.

Posted in * Culture-Watch, * Economics, Politics, * International News & Commentary, America/U.S.A., Budget, Economy, Europe, Globalization, Politics in General, The National Deficit, The U.S. Government

One comment on “Willem Buiter gives Citi's Global Economics View: Sovereign Debt Problems in Advanced Countries

  1. Ad Orientem says:

    For an alternative point of view I would suggest [url=http://www.shadowstats.com/article/hyperinflation-2010]reading this article[/url]. Like the linked PDF above it is rather long, but well worth the read. It is also quite sobering if not actually frightening.