Tornado Alley (PROG)

[StephanieVanbryce]

Paul Krugman states .. in referring to this article [ As Greece Ponders Default, Lessons From Argentina
http://www.nytimes.com/2011/06/24/business/global/24peso.html?_r=1&pagewanted=all ]

Don’t Cry For Argentina

OK, I guess I don’t quite see how Argentina’s default, of all examples, can be viewed as a cautionary tale for Greece:



Argentina suffered terribly from 1998 through 2001, as it tried to be orthodox and do the right thing. After it defaulted at the end of 2001, it went through a brief severe downturn, but soon began a rapid recovery that continued for a long time. Surely the Argentine example suggests that default is a great idea; the case against Greek default must be that this country is different (which, to be fair, is arguable).

I was really struck by the person who said that Argentina is no longer considered a serious country; shouldn’t that be a Serious country? And in Argentina, as elsewhere, being Serious was a disaster.


http://krugman.blogs.nytimes.com/2011/06/23/dont-cry-for-argentina/