One should treat others as one would like others to treat oneself.
To critics of Germany’s insistence that Athens must agree to more painful austerity before any sort of debt relief can be put on the table, the precedent serves as a blunt retort: the main creditor demanding that Greeks be made to pay for past profligacy benefited not so long ago from more lenient terms than it is now prepared to offer. (Pictured here: Churchill and Chancellor Konrad Adenauer, head of the German delegation.)
The 20th century offers a rich road map of policy failure and successes addressing sovereign debt crises. The good news is that by now economists generally understand the contours of a successful approach. The bad news is that too many policy makers still take too long to heed their advice – insisting on repeating failed policies first.
Source: The New York Times, July 7