Gloomy talk and stern warnings can help assure markets that a government is taking its fiscal duties seriously. But Hungary's new government blundered badly on June 4th by casually comparing the country's economic woes to Greece's, and saying that it was "no exaggeration" to talk of a default on its debts. Hungary's cost of borrowing shot up and the forint plunged. International markets shuddered at the prospect of another European crisis.
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