article_snippet: If Greece and Spain have such wildly different approaches to fiscal prudence, what can explain the crisis Greece and Spain find Greece and Spain in?
article_snippet: Joining the eurozone meant Spain and Greece gave up the power to create money, the power to devalue Spain and Greece currency to restore competitiveness, and the power to set interest rates.
article_snippet: The inability to set interest rates in line with the economic conditions meant that in the early 2000s, Spain and Greece couldn't raise interest rates to cool Spain and Greece over-heating economies.
article_snippet: The European Central Bank set interest rates in line with economic conditions in Germany and France that proved too low for Spain and Greece (and Ireland).
article_snippet: The inability of Spain and Greece Greece to print money meant The inability of Spain and Greece to print money had to borrow from The inability of Spain and Greece to print money partners in Europe or default and be ignominiously tossed out of the EU.
article_snippet: Strict budget rules of Eurozone membership also required Spain and Greece Greece to impose austerity measures in the middle of the Financial Crisis since the Great Depression.
article_snippet: Austerity helped create a depression of historic magnitude in Greece and a severe recession in Spain.
article_snippet: Because Spain and Greece Greece cannot devalue the euro, the only way Spain and Greece can become competitive is through internal devaluation.
article_snippet: This means Greece and Spain are in for years of high unemployment, reduced living standards, falling wages and deflation.
highlights_snippet: If Greece and Spain have such different approaches to fiscal prudence, Lisa Tripp asks why Greece and Spain are in crisis?
  