1. Germany, Greece and Existing Debt
... print money to spend like the United States is able to do. Due to the shared Euro, a further Greek deterioration could affect the German banks and cause their currency value to drop. This would decrease asset value in real terms and would increase the costs of necessary parts of their economy for example energy. This is why other Northern European economies such as France, Belgium ... and Netherlands all hold Greek debt as well. Allowing their economy to deteriorate further would lead to a drop in international confidence in both the Euro and the Eurozone economy. As we know confidence ...
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- Grade Level: High School