The Dig: Europe w/ Anton Jäger & Dominik Leusder
Jacobin Radio
00:00
What Happened to Greece and Portugal?
Greece paid 25% in the early 90s on their 10 year bond. But this quickly fell and all of these peripheral bonds converged on yields of core economy bonds. Germany has very low borrowing costs because markets priced risks in a certain way, he says. The reason why the Troika continues with its destruction of the Greek economy is that it couldn't risk a run through the European bond markets, writes Pissarides.
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