The BBC is reporting that an Ex-IMF economist, Simon Johnson, believes
the UK should be added to the list of European countries that are at risk of insolvency.
The government of Portugal has voted against an austerity bill, according to an article titled “
Portugal debt vote likely to rattle markets” by The Globe & Mail.
News | Tagged austerity, democracy, formula, future going burden, GDP, Greece, legislation, Portugal, prediction, Spain, UK
According to the BBC,
Greece has unveiled major spending cuts. In my commentary below, I hypothesize a way to calculate a “future going burden” for countries based on data in the BBC article (i.e. based on debt as a percentage of GDP and deficit as a percentage of GDP).
Commentary, News | Tagged anti-cyclical, compound interest, cuts, cyclical, Eurozone, fiscal policy, future going risk, Germany, Greece, Ireland, Italy, monetary policy, prediction, prevention, pro-cyclical, Spain, spending, taxes, UK, United Kingdom
According to the BBC, investors are concerned that Greece
may default on its debt. From the article:
This week two-year bond yields have surged to 3.09% from 1.9%. Ten-year Greek bonds had their worst weekly decline since January, with the yield up to 5.3% from 4.99%.
‘Rules of Thumb’ for Sovereign Debt Crises is IMF Working Paper No. 05/42. It is also available on SSRN.