Written by
Paul Krugman - “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.”
Article:
Don’t Cry For Argentina by Paul Krugman, June 23, 2011 –
http://krugman.blogs.nytimes.com/2011/06/23/dont-cry-for-argentina/
