Are there precedents to the situation that Japan, Italy and Greece are in?

D

Daal

Is there a precedent to that situation they are in? Meaning a country with a very high debt to GDP ratio that doesn't improve (and the improvement could come through devaluation of the currency, default, etc but these 3 countries dont seem to like that, at least to not any significant extent)
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Are there any examples of countries that went through that a long-time ago? What is the end game here?
 

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Germany went into "austerity" after WW1.

Though it depends on the people. It'll probably not be like Germany pre-WW2 and not like some African countries today, but somewhere in the middle.

It's simply bad/centralized/externalized management, but the outcome will depend on the people.
 
Daal said:
Is there a precedent to that situation they are in? Meaning a country with a very high debt to GDP ratio that doesn't improve (and the improvement could come through devaluation of the currency, default, etc but these 3 countries dont seem to like that, at least to not any significant extent)
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Are there any examples of countries that went through that a long-time ago? What is the end game here?
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Tell me again how Italy and Greece can devalue their currency and EU allows them to default?
 
d08 said:
Japanese debt is mostly owned by Japanese corporations so it's not apples-to-apples comparable. Aligned objectives.
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I agree.

As a layperson, it seems all Japan does is take money from one pocket and put it in another?
 
Daal said:
Is there a precedent to that situation they are in? Meaning a country with a very high debt to GDP ratio that doesn't improve (and the improvement could come through devaluation of the currency, default, etc but these 3 countries dont seem to like that, at least to not any significant extent)
View attachment 189405


View attachment 189407

View attachment 189408

Are there any examples of countries that went through that a long-time ago? What is the end game here?
More...
For the weaker Eurozone countries they continue to gradually improve as most have done until the next financial crisis. At which point Germany and France either see it in their best interest to bail them out and they get bailed out, or they don't and they leave the Eurozone and their currency devalues and it's a self-correcting problem which is as it has been for most of the rest of history. Much of the weak Eurozone countries issues stem from the artificial construct of the Eurozone and the fact that language and other barriers mean that labor doesn't freely flow while capital does. Really a structural problem with the entire concept, but as long as the benefits for the richer countries outweigh the downsides they'll make it work and when it no longer does they'll break up. The debacle of Brexit is probably giving everyone some pause now though, especially given it didn't even involve the common currency (or Schengen).
 
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