I'm not sure what to make of this at all ... and it really isn't on any macroeconomists radar screen just yet.
Anyway, Croatia put in place a policy today by which the government is cancelling the debts of a small chunk of the population.
This may or may not be related to the appreciation of the Swiss franc, in which many Croatian mortgages are denominated.
Interestingly, part of the reason for this policy change is that Croatia, as a relatively new country, has no bankruptcy law whatsoever. So there's no way for anyone to get out from under their debt burden, whether they have a good reason or not.
There are lots of links to this on the internet, but they all say pretty much the same thing. Here's one.
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