I respect that governments are bound by their voters’ will. That will might well differ between jurisdictions in general, and between creditors and debtors in particular. At the same time, I see a risk that governments are making it too easy for themselves when they claim that they cannot make any further concessions at international level because of domestic political pressures.
1 Illustrating this view, Fed Chairman William Miller observed in his first FOMC meeting in March 1978 that “inflation is going to be left to the Federal Reserve and that’s going to be bad news.