Lessons from Greece’s Fiasco

Sales of state-owned assets have been proposed as a way for highly-indebted countries to ease the pain of fiscal consolidation. This column argues that, despite the potential merits of privatisation in terms of long-run efficiency, in practice it is unlikely to improve short-run fiscal solvency. Since governments rarely alienate control rights, the efficiency gains from […] View the full post at: Lessons from Greece’s Fiasco Related posts: Moody’s Lowers Greece’s Sovereign Rating to A3, On Review for Further Downgrade Greece Going Lehman On Us Greek PM: Greece One Step From Being Unable to Borrow