The Memornada trap and almost fall of the Greek economy

Kyriazis, Nicholas and Economou, Emmanouel/Marios/Lazaros (2016): The Memornada trap and almost fall of the Greek economy.

Abstract

We analyse economic and political developments in Greece for the period 2010-2015, after the introduction of the memoranda agreements between Greece, the European Union (EU), the European central Bank (ECB) and the International Monetary Fund (IMF). We suggest that a vicious cycle took place, whereby austerity measures, badly implemented programs, mistakes of economic policy, unwillingness on the part of the Greek governments to implement structural reforms, and political immaturity from both politicians and citizens led to the failure of the memoranda and furthered political instability. We introduce a game theoretical approach as a model for the “European game” played by Greece and the EU and the complex and confused situation and diverging aims among the major participants: Greece, Germany, the USA, France, the Baltic States, Finland, the IMF, etc. as well as a presentation of the June 5th referendum in Greece. We then present our estimations for the sustainability of the public debt, followed by our conclusions.

• Item Type: MPRA Paper
• Language: English
• Keywords: Memoranda, Greek economic crisis, public debt, debt projection analysis
• Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E60 - General; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; H - Public Economics > H5 - National Government Expenditures and Related Policies > H50 - General; H - Public Economics > H6 - National Budget, Deficit, and Debt > H63 - Debt ; Debt Management ; Sovereign Debt; N - Economic History > N1 - Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations > N14 - Europe: 1913-

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