{"id":525768,"date":"2010-04-13T09:31:03","date_gmt":"2010-04-13T13:31:03","guid":{"rendered":"tag:www.economist.com,21006002"},"modified":"2010-04-13T09:31:03","modified_gmt":"2010-04-13T13:31:03","slug":"why-do-we-care-about-greece","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/525768","title":{"rendered":"Why do we care about Greece?"},"content":{"rendered":"<p>SCOTT SUMNER <a href=\"http:\/\/www.themoneyillusion.com\/?p=4869&amp;utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+Themoneyillusion+%28TheMoneyIllusion%29&amp;utm_content=Google+Reader\">writes<\/a>:<\/p>\n<blockquote>\n<p>If Greece were not part of the euro, then Greek debt problems would  probably not be impacting Wall Street.&nbsp; I\u2019m not certain exactly why they  have recently&nbsp;affected Wall Street, but I would guess that there  is&nbsp;worry that the debt problems in Europe may impact the stance of world  monetary policy.&nbsp; Perhaps there is&nbsp;fear that a eurozone crisis would  make the dollar stronger, and that this would slow the US recovery.&nbsp; In  the early 1930s the war debt problems made gold stronger, and delayed  recovery for any currency still tied to gold.<\/p>\n<\/blockquote>\n<p>An interesting point, though I think it&#8217;s hard to know what the net effect on monetary policy will be. The <em>FT<\/em> <a href=\"http:\/\/www.ft.com\/cms\/s\/0\/762c8ebc-4596-11df-9e46-00144feab49a.html\">noted<\/a> yesterday:<\/p>\n<blockquote>\n<p>Moreover, the European Central Bank decided last week to prolong the  exceptional collateral regime, which allows banks that own Greek bonds  to exchange their assets for cheap central bank funds. This was a  significant announcement, and will provide Greece and its creditors with  breathing space.<\/p>\n<\/blockquote>\n<p>The ECB is roped into the rescue, which could reflect poorly on its credibility and lead to increased inflation expectations, or which could spur the ECB to tighten excessively in order to avoid the public perception that its credibility is compromised. Either way, the impact on monetary policy is something to watch.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SCOTT SUMNER writes: If Greece were not part of the euro, then Greek debt problems would probably not be impacting Wall Street.&nbsp; I\u2019m not certain exactly why they have recently&nbsp;affected Wall Street, but I would guess that there is&nbsp;worry that the debt problems in Europe may impact the stance of world monetary policy.&nbsp; Perhaps there [&hellip;]<\/p>\n","protected":false},"author":4534,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-525768","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/525768","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4534"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=525768"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/525768\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=525768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=525768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=525768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}