This keeps me thinking why is this so ? For many years since i last remembered, economic progress is about Cycle of Boom and Bust. Is like Ying and Yang. This time round, money is everywhere except investment for recovery growth as the yield is low.
New and Stronger economic activity has to come with motivation of human kind ingenuity. What so being less well off or in desperate condition less engineered from an educated and well connected population ?
Cyprus took the first drastic step of punishing depositors when banks go bust. To the commoner, is a personal disaster especially for those near or retired. Nevertheless it may be a blessing in disguise for the small island in debts.
Japan did similar in another style by engineering inflation. Yes. By shrinking the population purse through inflation, they will have lesser purchasing power overtime which will push people to innovate to stay above the water. 2% inflation target is nothing to shout about frankly but is a step in the right direction nevertheless. Will they be able to finally break years of economic stagnation ?
Will other troubled nations follow ?