The United States (and UK) will never turn into Greece

A useful piece by Matthew O’Brien showing the lack of evidence that countries that can borrow in their own currency face debt tipping points. For countries with a floating currency (outside the eurozone), there is therefore highly unlikely to be a spike in interest rates as the national debt rises with continued budget deficits during a recession. It also contains some evidence that, as Paul Krugman has argued, the eurozone countries in crisis face a balance of payments problem disguised by the single currency as a debt problem.

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