The economics of bluffing
When political leaders turn into option-writers
WILL Greece default on its debts and leave the euro? Will Britain decide to leave the European Union? Politicians in the two countries have threatened, implicitly or explicitly, to take these drastic steps if their European colleagues do not offer them inducements to stay.
This article appeared in the Finance & economics section of the print edition under the headline “The economics of bluffing”
From the May 30th 2015 edition
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