Argentine solution for Greece?

With the press full of stories about the debt crisis in Greece and their draconian* prescription of sackings and pay and pension cuts for Greek workers, it maybe that other recent experiences offer a much saner solution. (*Draco was a politician in Ancient Greece who thought the punishment for any law-breaking should be death)

Argentinian President Cristina Fernandez has warned that her country's experience shows that austerity measures are exactly the wrong medicine in a debt crisis - and so Europe's rescue plan for Greece is "condemned to failure."

She told Argentinians at the weekend that if economic activity is cut back "you reduce even more the capacity to pay the debt."

Argentina has had to go it alone after rejecting the deep cuts demanded by the International Monetary Fund to secure more loans.

In 2001 the country was where Greece is today, with its economy sputtering, companies failing and huge debts.

But rather than a trillion-dollar rescue to avoid defaulting, Argentina defaulted and had to figure out how to rebuild its economy without outside help.

In fact the country boomed during this period of isolation. By boosting government spending to stimulate the economy, Argentina has increased its GDP by more than half since 2003.