Cyprus took on its spending problem head on.
read more...Did Cyprus become an economic basket case because it is a tax haven, as some leftists have implied? Did it get in trouble because the government overspent, which I have suggested? The answers to those questions are “no” and “to some degree.” The real problem, as I explain in this interview for Voice of America, […]
read more...This article appeared in PolicyMic.
read more...It doesn’t create a lot of confidence in Europe that tiny little Cyprus, with a GDP less than Vermont, is now causing immense turmoil. Though to be more accurate, events in Cyprus aren’t causing turmoil as much as they’re causing people to examine both government finances and bank soundness in other nations. And that’s causing […]
read more...Here are three common-sense principles. Higher taxes are misguided. They undermine prosperity and finance bigger government. Bailouts also are misguided. They facilitate corruption and encourage moral hazard. And international bureaucracies are misguided. They promote statism and squander money. So what’s the “perfect storm” of bad policy? How about when international bureaucracies offers a bailout in […]
read more...With all the fiscal troubles in Greece, Spain, Ireland, Portugal, and Italy, there’s not much attention being paid to Cyprus. But the Mediterranean island nation is a good case study illustrating the economic dangers of big government. For all intents and purposes, Cyprus is now bankrupt, and the only question that remains to be answered […]
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