ON DEBT REDUCTION: Ancient solutions to age-old problems
From the Financial Times’ letters section, 30 September 2011

Sir, History offers a useful guide to resolving the Greek sovereign debt crisis. As recently as 173BC, Livy tells us: “The Aetolians were in a state of civil strife on account of the immense burden of their debt; the Thessalians also were in this condition; and this evil had spread by contagion like a plague … The Senate sent Appius Claudius as commissioner to investigate the situation and to arrange a settlement. He censured the leaders … and reduced the burden of debt, which had been aggravated by excessive rates of interest. The majority of the creditors who had imposed the loads made voluntary concessions; and Appius arranged for the repayment in 10 annual instalments of debts legally owing.”

This model has since established itself as the most successful way of resolving a sovereign debt default in every succeeding century.

Brian Garcia, Twickenham, Middx, UK

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ON STATE SPENDING AND UNEMPLOYMENT: Have we learnt anything at all?
From the Financial Times’ letters section, 4 October 2011

Sir, I was interested to learn from Brian Garcia (Letters, September 30) how the ancient Greeks solved their debt problems in 173BC. In the mid-5th century BC, Pericles advocated the use of public works as a means of providing work for the unemployed. And the ancient Romans had a property price crash/credit crunch, which they dealt with in short order.

Has our understanding of economics improved or deteriorated over the past two and a half millennia?

Ralph Musgrave, Durham, UK