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The Treasury's argument, echoing Hume and Smith, was that to borrow money to finance spending, the government would have to offer better terms than those available elsewhere. This would have the effect of reducing overall investment by
"crowding out" private capital while increasing the debt for …

[...] This is ordoliberalism gone mad, as well as the logic behind the euro [...] those rules only ever apply to sovereigns. [...] there was never much attention paid to the possibility that private actors, such as banks, would behave badly. Yet this is exactly what happened, and the EU is still bl…

[...] the dumping of other (non-Greek) assets to cover their (Greek) losses, which then lowers the value of the unrelated assets, eventually leading to a fire sale of good assets as a whole [...]