Publication

This commentary addresses Greece's sovereign debt crisis and contends that the debt burden on the country has been overstated, and that it is even lower than that of Belgium and France. What this means, the author suggests, is that Greek government debt is most probably sustainable, provided that the country's economy starts to grow, but that Greece cannot find the liquidity to service its debt due to market expectations that it will not be able to find this liquidity. Finally, he examines the part that the European Central Bank (ECB) plays in this equation and what it can do to overcome it.