Economic events occur around us every day. This assignment aims to Essay

Economic events occur around us every day. This assignment aims to provide association between what you learn from economic models and concepts in class with real-life events happening around you - Essay Example dly, Greece cannot now maintain its euro as the ratio of debt to domestic rise to 151% in 2012 and expected to remain at 149% in 2013 (â€Å"New York Times,† 2012, p.1). The big question is whether Greece will manage to get out of this major recession or it will result in an economic depression. The year 2012 was big for Greece as economists figured out different ways of getting Greece out of recession and out of debts. Lucas Papademos, Greece prime minister gave hope to the nation of new opportunity to use the saved interests and debt repayments. In March 2012, the country expects European officials to sign 130 billion Euros that Greece needs in stopgap financing. This will help Greece negotiate a landmark debt restructuring deal with its private lenders. The move will also help clear way for European commission, European Central bank, and International Monetary Fund to begin releasing fund to Greece. One worry with the government is that the big money coming in to Greece ended up in the pockets of troika leaving the country in enormous debts and less chances of growth. Greece could not even pay for its vital public services. By July, pressure was building up as Germany officials spoke of a possibility of Greece leaving Euro in fall. Greece was in dire need of a better fiscal policy that would get the country out of the current crisis. The government had hoped to make a better deal to solve the crisis with the involvement of the private sector. Apparently, they have refused and the government cannot force them to do it since the Greek law does not govern their bonds. Worse still is the fact that investors would sue the government for trying to impose the deal on them. The fact that public sector is now the biggest creditor gives an opportunity to the creditor nations of taking collective steps of assisting Greece government before the next crisis hits in. However, this may not yield much because Greece government traded their ability to write down debts to