Cameron Urges Swift Eurozone Debt Action
U.K. Prime Minister David Cameron on
Monday warned that “time was short” for
Eurozone leaders bidding to solve a debt crisis.
Cameron called on Germany to accept the
“collective responsibility” of the euro project and
beef up the zone’s 440-billion-euro ($589-billion)
bailout fund.
Source: AFP, October 11, 2011
a. How does a large budget deficit that brings a
large debt-to-GDP ratio create a “debt crisis”?
b. What are the alternative ways in which a
Eurozone nation can address its debt crisis?
c. What is the dilemma facing a country with a
debt crisis and a recession?