GLOBL 2 Lecture Notes - Lecture 6: Domingo Cavallo, Syriza
Document Summary
Gov. revenues = taxes, exports (commodities), privatization (sell assets), debt w/ interest, investments. Gov. expenditures = interest and debt payments, social programs, infrastructure, defense, state employees. Gov. gets deficit when exchange rate changes or expenditures > revenues. Domingo cavallo, lead economist, sets on proposals backed w/ imf %% collapse 1999-2002. Gov. continues w/ conditions and now has austerity protests. U. s. too big to fail banks bailed out. Vs. in europe too big to bail no one country is big enough to bail out the banks transform it into a public problem. Responses = blame others, outsiders, more austerity and loans b/c of electoral politics, historical legacies, interest groups (banks), and economic ideas. 1999 new currency created,the euro imposes requirements on countries, like a maximum 3% budget deficit (overspending) 2010 greece receives loan from european central bank and later a second one from.
