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2010-03-01

A fiscal and political strategy for Greece current woes

Comments on Karen Maley “Will traders catch Spanish flu?” 1/03/2010, http://www.businessspectator.com.au/bs.nsf/Article/Will-traders-catch-Spanish-flu-pd20100301-34RWV?OpenDocument&src=sph

Why don't the Greek government design a clever fiscal strategy to make its balance sheet or finance better without relying too much on government bond?

For example, the government can increase the taxes of all sources temporally for a period, and return the tax in the future with a set interest.

This would act as compulsory borrowing from its taxpayers.

It should be the best fiscal and political strategy and there are hardly any other strategies that are better.

While politically it is not without difficulties, it should be a reasonable political strategy to sell it to the taxpayers. People are rational.

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