01 Jul 2011

History repeating itself: From the Argentine default to the Greek tragedy?

Cinzia Alcidi / Alessandro Giovannini / Daniel Gros

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Since the onset of the debt crisis in late 2009, the comparisons between Greece and Argentina have multiplied, with an emphasis more on the similarities than the differences. This is not surprising given the stunning parallels. This Commentary draws a systematic comparison between the two countries over the decade before the crisis and the management of the crisis. Overall it suggests that there may be little left for Greece to do to avoid a repeat of the Argentine default, but on a larger scale.