Greece illustrates the importance of staying within economic limits / Greece shows the flaws in pursuing a common monetary policy response to economic shocks across the EU / Ancient Greece is where Western civilisation began, and modern Greece is where it ends

What lessons can Greece provide with a view to preventing future debt crises? Carol Osler writes that the Greek debt crisis illustrates the importance of staying within economic limits. She notes that while it is impossible to ensure countries will always be financially responsible, well-run societies should aim to protect citizens from the dangers associated with excess government debt.

In the related url feature the author asks to what extent is the Greek debt crisis a function of wider flaws in the design of the single currency? Bruce Morley writes that while Greece’s debt already exceeded 100 per cent of GDP in the 1990s, it is not simply the size of a country’s debt that determines whether it is sustainable. He argues that the real problems illustrated by Greece stem from the application of a common monetary policy across the Eurozone despite key structural differences between individual Eurozone economies.

• Primary Source

ESO: Background information: The Greek debt crisis: Key sources http://www.europeansources.info/record/the-greek-debt-crisis-key-sources/

Blog: LSE EuroppBlog 02.09.15: Greece shows the flaws in pursuing a common monetary policy response to economic shocks across the EU http://bit.ly/1LJMV5c

Blog: LSE EuroppBlog 03.09.15: Ancient Greece is where Western civilisation began, and modern Greece is where it ends http://bit.ly/1ECru6u

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