• Table of Contents
    • Abstract
    • Keywords
    • Article
      • 1. Introduction
      • 2. The period of debt escalation: 1980–1993
        • The first fiscal crisis
      • 3. Debt stabilization and EMU membership
        • The implementation of market reforms
        • Post-EMU fatigue
        • Why debt reduction was insufficient
        • The Current Account
      • 4. Unprepared for the 2008 crisis
        • Post-election inaction
        • The role of external deficits
      • 5. Two important policy facts
        • Cyclicality of public spending
        • Electoral cycles
      • 6. An ex post assessment of the Memorandum
        • The failure in fiscal adjustment
        • The limits of structural adjustment
        • The failure of privatizations
      • 7. The new Memorandum conditionalities and ways-out of the crisis
        • Three alternative scenarios: Walking on a tight rope
        • Is exit from the Euro an option?
        • Stay in the Eurozone and grow more
      • 8. Conclusions
      • Acknowledgement
      • Disclaimer
    • See Also
    • References
    • How to cite this article

Greek crisis in perspective: Origins, effects and ways-out

Nicos Christodoulakis
From The New Palgrave Dictionary of Economics, Online Edition, 2012
Edited by Steven N. Durlauf and Lawrence E. Blume
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In 2011 the Euro faced its toughest challenge since its introduction as several of the participating Member States faced unprecedented financial problems. Greece was the most severe case requiring intervention from the EU and IMF to stabilize its economy and repay debt obligations. This article explains the debt process in Greece from the 1980s to date, and describes its main causes and episodes. It also assesses the IMF-EU Memorandum and argues that the collapse of growth inhibits the prospects of debt stabilization. An alternative scenario is discussed showing that stabilization can become more effective and realistic if recession is tackled first and reforms follow on a steadier path.
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How to cite this article

Christodoulakis , Nicos. " Greek crisis in perspective: Origins, effects and ways-out." The New Palgrave Dictionary of Economics. Online Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2012. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 13 December 2017 <http://www.dictionaryofeconomics.com/article?id=pde2012_G000221> doi:10.1057/9780230226203.3875

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