This is from the Economix blog of the NY Times, where she and some others answered readers’ questions:

The current E.U. plan does not envision restructuring; restructuring remains a taboo subject in official circles. Restructuring can be extremely disorderly, or it can be made less so (an under-the-rug restructuring) — if, for instance, French, German and other banks holding Greek debts are offered support from their governments if the interest rates on Greek debts are trimmed and maturities lengthened. Officials, of course, deny such a scenario to be possible — which, of course, means nothing.

The current plan is about saving the E.U., not about saving Greece per se. This includes reducing speculation about the demise of the euro as well as concerns about what a Greek default could do to financial institutions in France and elsewhere. This is understandable. The sharp easing in monetary policy in the summer of…

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