If it seems as if you've been hearing some variation of that for a while now, that's because you have. This time might be different, though, because all the bad things people had only worried would happen are happening. Greece's government last week missed a critical debt payment to the International Monetary Fund, and its banks have been forced to close.
And on Sunday, Greeks voted, by a surprisingly large margin, to reject the European austerity demands that would have meant more financial relief for Greece. The country's banks now are at risk of imminent collapse, and the country could be forced to leave the historic monetary union.
So how did we get here, and what does this mean for Greece, Europe and the rest of the global economy? The short answer is (1) with a currency that's a doomsday device for turning recessions into depressions, and (2) it shouldn't be the end of the world. And the longer one, well, here it is.
If it seems as if you've been hearing some variation of that for a while now, that's because you have. This time might be different, though, because all the bad things people had only worried would happen are happening. Greece's government last week missed a critical debt payment to the International Monetary Fund, and its banks have been forced to close.And on Sunday, Greeks voted, by a surprisingly large margin, to reject the European austerity demands that would have meant more financial relief for Greece. The country's banks now are at risk of imminent collapse, and the country could be forced to leave the historic monetary union.So how did we get here, and what does this mean for Greece, Europe and the rest of the global economy? The short answer is (1) with a currency that's a doomsday device for turning recessions into depressions, and (2) it shouldn't be the end of the world. And the longer one, well, here it is.
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