Krugman on Greece debt crisis

Valerie S. (United States of America)

4 words 0 learners

Learn words with Flashcards and other activities

bank run
the concerted action of depositors who try to withdraw their money from a bank because they think it will fail

But if the crisis countries are forced into default, they’ll probably face severe bank runs anyway, forcing them into emergency measures like temporary restrictions on bank withdrawals.
deflation
the act of letting the air out of something

Now that Greece and Germany share the same currency, however, the only way to reduce Greek relative costs is through some combination of German inflation and Greek deflation.
inflow
the process of flowing in

And all of the countries were attracting large inflows of foreign capital, largely because markets believed that membership in the euro zone made Greek, Portuguese and Spanish bonds safe investments.
downgrade
the property possessed by a slope or surface that descends

Earlier this week, when it downgraded Greek debt, Standard & Poor’s suggested that the euro value of Greek G.D.P. may not return to its 2008 level until 2017, meaning that Greece has no hope of growing out of its troubles.

Created on 四月 30, 2010