FIGURE 17-11 Greek and German Long-Term Interest Rates
imageAs late as 2008, the government of Greece could borrow at interest rates only slightly higher than those facing Germany, widely considered a very safe borrower. But in early 2009, as it became clear that both Greek debt and Greek deficits were larger than previously reported, investors lost confidence, sending Greek borrowing costs sky-high.
Data from: Federal Reserve Bank of St. Louis; OECD “Main Economic Indicators Complete Database.”