Economics Today: PIGS, PIIGS, and PIIGGS - International Monetary Crisis

We are watching the news today following the economic crisis on Wall Street and rioting in Greece. There are a lot of terms being thrown around that should be explained and discussed with students by teachers covering these important current events.

PIGS: Portugal, Italy, Greece, and Spain.
PIIGS: Portugal, Italy, Ireland, Greece, and Spain.
PIIGGS: Portugal, Italy, Ireland, Greece, Great Britain, and Spain.
[The acronym has changed as more countries have been added to the group.]

Why are these countries "piiggs"? While not all of their economies are hurting like the economy of Greece, they are heavily in debt. A decrease in buying from Greece, the United States, or one another may cause severe recessions (or even depressions) in these countries. Because the world trading economy is so heavily linked, decreased spending by these countries can easily hurt the United States.

Example students can understand: Thousands (or more) American tourists visit Europe each year. These tourists buy necessities (food) and buy souvenirs (goods) when in Europe. Because of the recession in the United States, fewer American tourists have visited Europe. Debt-heavy European countries rely on tourism to support their economies. If American tourists do not visit Europe, the European economy suffers. [For older students, describe the trade goods of Europe and the United States.]

PIIGS from Marketplace on Vimeo.