This points to another issue: liquidity.
It is currently keeping the EU banking system afloat by issuing liquidity - this stops the banks having to recapitalise and write off debts, and governments likewise.
This inflation was exacerbated by the practice of the Central Bank of Iceland issuing liquidity loans to banks on the basis of newly issued, uncovered bonds – effectively, printing money on demand.
Raghuram Rajan: Forget the public utterances: the research done at this place was, essentially, right on the ball — issues of liquidity, the fact that liquidity might dry up, and who's there to provide liquidity in those situations.
"The credit issues, the liquidity issues, are still there," said Ryan Detrick, strategist at Schaeffer's Investment Research.
The European Central Bank said Wednesday that the growth of such loans had slowed to an annual rate of 1.1 percent from 1.5 percent in January, raising issues of liquidity, other analysts said.
"While the issues of liquidity and health of the European banking system and the long-term viability of the euro are still out there, today is a day where people are looking beyond that.
Since the onset of this financial crisis, the department's advanced doctoral courses in macroeconomics have shifted their focus and delved deeply into issues of liquidity and credit crises.
Issues of liquidity and solvency in Greece invite a frightening look into the mirror for nations in the developed world.
"It's a combination of lower subsidies and issues of liquidity that are making it harder for them to make a profit," says Harrington, herself a former banker.
