Greece finds itself in a pickle that's largely of its own making. But the almost total failure of the euro zone's process for maintaining fiscal discipline enabled–and may even have encouraged–successive Greek governments to borrow irresponsibly.
That process now needs to be overhauled to prevent a recurrence of the fiscal crisis.
The basic flaw is one that is common to many of the regulatory and control systems that neither controlled nor regulated behavior in the run up to the financial crisis: it relied heavily on the markets to enforce fiscal discipline.
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