Greek government-debt crisis
The Greek government-debt crisis happened after the financial crisis of 2007–08. In Greece it is known as The Crisis (Greek: Η Κρίση). It started with sudden reforms and austerity measures. But this made people poor and lose money and land.
A trade deficit means that a country is buying more than it produces, so it has to borrow from others. Both the Greek trade deficit and budget deficit rose from below 5% of GDP in 1999 to peak around 15% of GDP in the 2008–2009 periods. Greece was perceived as a higher credit risk alone than it was as a member of the Eurozone. Thus investors felt the EU would help out Greece.
Reports in 2009 of Greek government disorganization increased borrowing costs. Greece could no longer borrow to finance its trade and budget deficits at an affordable cost.
The Great Recession[change | change source]
The Greek crisis was triggered by the Great Recession, which led the budget deficits of several Western nations to reach or exceed 10% of GDP. Greece had high budget deficit (10.2% and 15.1% of GDP in 2008 and 2009, respectively). But at the same time it had high public debt to GDP ratio. Greece appeared to lose control of this ratio, which already reached 127% of GDP in 2009. Being a member of the Eurozone, the country had essentially no autonomous monetary policy flexibility.
Internal factors[change | change source]
In January 2010, the Greek Ministry of Finance published the Stability and Growth Program 2010. The report listed five main causes: poor GDP growth, government debt and deficits, budget compliance and data credibility. Causes found by others included excess government spending, current account deficits, tax avoidance and tax evasion.
Bibliography[change | change source]
- Karyotis, Georgios; Gerodimos, Roman (2015), The Politics of Extreme Austerity: Greece in the Eurozone Crisis, Basingstoke: Palgrave Macmillan, ISBN 978-1-137-36922-2
- Blustein, Paul (7 April 2015), Laid Low: The IMF, the Euro Zone and the First Rescue of Greece (PDF), CIGI Papers Series, CIGI, retrieved 18 April 2015 CS1 maint: discouraged parameter (link).
- Orphanides, Athanasios (19 October 2015), The Euro Area Crisis Five Years After the Original Sin, MIT Sloan Research Paper, MIT Sloan School of Management, SSRN 2676103 CS1 maint: discouraged parameter (link).
- Schadler, Susan (October 2013), Unsustainable debt and political economy of lending; constraining the IMF's role in sovereign debt crises (PDF), CIGI Papers Series, CIGI, retrieved 19 August 2015 CS1 maint: discouraged parameter (link).
- Dalakoglou, Dimitris (2012). "The crisis before the crisis". Social Justice. 39 (1): 24–42. Retrieved 11 November 2013. CS1 maint: discouraged parameter (link)
- Dalakoglou, Dimitris (2014). Crisis-scapes: Athens and Beyond. Athens, Brighton: ESRC. ISBN 978-1-938660-15-3.
- Janssen, Ronald (July 2010). "Greece and the IMF: Who Exactly is Being Saved?" (PDF). Washington, DC: CEPR. Retrieved 11 November 2013. Cite journal requires
|journal=(help)CS1 maint: discouraged parameter (link)
- Pasiouras, Fotios (2012). Greek Banking: From the Pre-Euro Reforms to the Financial Crisis and Beyond. Basingstoke: Palgrave Macmillan. ISBN 978-0-230-35608-5.
- Hyppolite, Paul-Adrien (May 2016), Towards a Theory on the Causes of the Greek Depression: An Investigation of National Balance Sheet Data (1997–2014) (PDF), ELIAMEP: Crisis Observatory, retrieved 2 June 2016 CS1 maint: discouraged parameter (link).
- Takagi, Shinji; et al. (8 July 2016), "The IMF and the Crises in Greece, Ireland, and Portugal: An Evaluation by the Independent Evaluation Office" (PDF), IEO-IMF, Independent Evaluation Office of the International Monetary Fund, archived from the original (PDF) on 3 August 2016 CS1 maint: discouraged parameter (link).
- Reinhart, Carmen M.; Trebesch, Christoph (2015), The pitfalls of external dependence: Greece, 1829-2015 (PDF), Brookings Papers on Economic Activity, retrieved 26 September 2016 CS1 maint: discouraged parameter (link).
- Baldwin, Richard; Giavazzi, Francesco, eds. (7 September 2015), The Eurozone Crisis: A Consensus View of the Causes and a Few Possible Solutions, VoxEU, CEPR Press, retrieved 26 September 2016 CS1 maint: discouraged parameter (link).
References[change | change source]
- iefimerida.gr (20 July 2015). "BBC: Η Ελλάδα βιώνει ανθρωπιστική κρίση -Εννέα αποκαλυπτικά γραφήματα [εικόνες]".
- Naftemporiki (26 March 2015). "Η Ελλάδα και η ανθρωπιστική κρίση".
- Oxenford, Matthew; Chryssogelos, Angelos (16 August 2018). "Greel Bailout: IMF and Europeans Diverge on Lessons Learnt". Chatham House. Retrieved 20 August 2018.
- "Federal Reserve Bank San Francisco – Research, Economic Research, Europe, Balance of Payments, European Periphery". Federal Reserve Bank of San Francisco. 14 January 2013. Retrieved 3 July 2015.
- "FRED Graph". stlouisfed.org. Retrieved 3 July 2015.
- Ezra Klein. "Greece's debt crisis explained in charts and maps". Vox.
- "2010-2018 Greek Debt Crisis and Greece's Past: Myths, Popular Notions and Implications". Academia.edu. Retrieved 14 October 2018.
- "Eurostat (Government debt data)". Eurostat. Retrieved 5 September 2018.
- "Greece is trapped by the euro". The Washington Post. 7 July 2015. Retrieved 7 April 2019.
- "The Euro Is a Straitjacket for Greece". The New York Times. 30 June 2015. Retrieved 7 April 2019.
- "Update of the Hellenic Stability and Growth Programme" (PDF). Greek Ministry of Finance. European Commission. 15 January 2010. Retrieved 9 October 2011.