This has led to intensive competition between the Greek banks both in the home market and abroad, with the result that the high Greek interest rate spreads over most Euro area countries’ bank loans has considerably diminished to the benefit of the consumer.
The turmoil of the past year and a half and the crisis of the past two months have been momentous. This episode will take its place as one of the most important in economic history. Ultimately, however, our response to these events will be more important than the events themselves.