Deficit-financed credit to expand demand sounds great, just like using credit card debt to finance an expansion in my own personal spending power sounds great: there are some times it makes sense but by and large you're fooling yourself if you think it leaves you more financially sound.
But... Treasuries? Another day, I'd contest your zero-opportunity-cost suppositions (cf. "crowding out") but more importantly, Greece's bonds don't have anywhere near the credibility of Treasuries, and they're having real problems issuing new ones. You can't finance expansion with deficits if no one will lend you money.
But... Treasuries? Another day, I'd contest your zero-opportunity-cost suppositions (cf. "crowding out") but more importantly, Greece's bonds don't have anywhere near the credibility of Treasuries, and they're having real problems issuing new ones. You can't finance expansion with deficits if no one will lend you money.