"There are some good technical explanations for the differences. Anders Aslund of the Peterson Institute notes rightly that austerity in Greece and Latvia was applied differently. The Latvians hit bureaucrats hard, but pensioners less so. They also made the biggest cuts right away. Aslund argues that drawing out a crisis creates more pain over time: The Greeks have protected their state sector, made cuts slowly and never convinced either their public or their creditors of their commitment. Uncertainty therefore persists; people and capital continue to flee the country."