Saving the Greek Sinner

Hans-Werner Sinn, Project Syndicate MUNICH – The euro’s current weakness has one culprit: Greece. At 14% of GDP, Greece’s latest current-account deficit was the largest of the euro-zone countries after Cyprus. Its debt-to-GDP ratio stood at 113% by the end of 2009. As this year’s deficit is projected to be more than 12% of a shrinking GDP, the debt-to-GDP ratio will soar above 125% by the end of 2010, the highest in the euro zone. Investors have reacted by trying to get out of the euro and, in particular, steer clear of Greek government debt. Greece had to offer them ... Leer más