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How have Hungarian politics been shaped by the 1990/92 decision to keep on servicing previous government debt rather than going the Polish route of getting a large writedown?

This show of "virtue" never seems to have been rewarded by foreign creditors, and seems to have saddled the country with persistently high deficits. Or were things different in the 90s?

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sun Mar 29th, 2009 at 07:01:05 AM EST
Some more sensible economists did indeed point at this "best-of-the-class" decision as a reason for lasting troubles; and this is what I referred to when I said a Kirchner would be needed. Then again, the situation could have been better, had the escalating spending spree promises of the 2002 election campaign not been fulfilled in a way that blew up the deficit again.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Sun Mar 29th, 2009 at 07:41:31 AM EST
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