64-05-19 Latin American Economy & Business Report
Economy & Business Report
Analysing the trade war scenario
The Greek financial crisis has been closely watched across Latin America, as the South European country has zigged and zagged between austerity and heterodoxy, between the Euro on one side and a possible Grexit and emergency revival of the Drachma on the other. Latin American politicians have claimed Greece proves them right – in sometimes-contradictory ways. And economists have argued over whether Greece could or should “do an Argentina” – in other worlds default on its debts, force the creditors to take a “haircut”, and enjoy a post-crisis surge in growth. Here, we try and pick our way through some of the arguments.
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