Frenkel: Distinguishing Between Good, Bad Debt Solutions

The transcript discusses Carmen Reinhart's views on Greek debt, emphasizing the need for restructuring and forgiveness. It explores various mechanisms for debt reduction, such as forgiveness and default, and considers the long-term consequences of these solutions. The importance of understanding the incentive effects of debt solutions is highlighted.

What is Carmen Reinhart's stance on Greece's economic revival?

• She agrees with Lord Skidelsky's views.

• She emphasizes the need for another round of haircuts and debt forgiveness.

• She thinks Greece should increase its borrowing.

• She believes it can be achieved without debt restructuring.

Which economist is mentioned as supporting the idea of debt forgiveness?

• Carmen Reinhart

• Paul Krugman

• Doctor Frankel

• Lord Skidelsky

What is the main topic discussed in the second section?

• The role of international trade in economic recovery

• The necessity of debt forgiveness and managing financial leverage

• The influence of political stability on economic policies

• The impact of technology on economic growth

What is a key concern when addressing a debt problem, according to the final section?

• The potential for future debt problems

• The impact on international relations

• The immediate financial gain

• The political implications

What are the two mechanisms mentioned for reducing debt?

• Forgiveness and default

• Investment and savings

• Taxation and spending cuts

• Inflation and deflation