Greek Crisis in Perspective: Origins, Effects and Ways-Out

Reference work entry

Breaking the cycle: Nicos Christodoulakis explains the Greek economic descent and what the country must do to recover.

In the aftermath of the global financial crisis of 2008, several European countries were engulfed in a spiral of rising public deficits and explosive borrowing costs that eventually drove them out of markets and into bail-out agreements with the International Monetary Fund (IMF), the European Union (EU) and the European Central Bank (ECB). Greece was by far the most perilous case, with a double-digit fiscal deficit, an accelerating public debt which in GDP terms was twice the Eurozone average, and an external deficit near US$5000 per capita in 2008, one of the largest worldwide.

In the wake of an EU bailout and two elections the situation remains critical. Unemployment is rocketing, social unrest undermines the implementation of reforms and the fiscal front is not yet under control, despite extensive cuts in wages, salaries and pensions. The possibility of Greece...


  1. Blume, Lawrence E. and Durlauf, Steven N. (ed.), The New Palgrave Dictionary of Economics (online edition). Palgrave Macmillan, 2013.Google Scholar

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