Friday, March 22, 2013

Cyprus establishes a historical milestone

Spanish economist José Carlos Díez notes something historic about the Cypriot government's ill-fated decision to freeze a portion of all savings accounts in Semana de pasión en Chipre El economista observador 22.03.2013.

Which is that such measures are usually taken when there is already a run on banks in progress. But to take the in order to provoke a run on deposits "es una decisión con muy pocos precedentes en los últimos tres milenios" ("is a decision with very few precedents in the last three milennia").

Paul Krugman gives a brief description of the Cyprus crisis in accessible language in Treasure Island Trauma New York Times 03/21/2013.

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