Understanding the Greek Crisis - Unlocking the Puzzle of Greek Banks’ Deteriorating Performance

World Economics, Vol. 12, No. 1, p. 177, January-March 2011

16 Pages Posted: 14 May 2011

See all articles by Michael S. Mitsopoulos

Michael S. Mitsopoulos

Hellenic Federation of Enterprises

Theodore Pelagidis

University of Piraeus; Brookings Institution

Date Written: January 1, 2010

Abstract

The downward adjustment of economic activity to match the reduced competitiveness of the economy, be it within the Eurozone or outside it as some advocate, will leave the Greek economy with a low level of economic activity, which will match its reduced competitiveness, even though its total indebtedness will still remain at the levels of a developed and competitive nation. The daunting challenges posed in such an event to the ability of the country to service its debt leave as the only reasonable option the choice to remain in the Eurozone and to implement an aggressive reform agenda, as in the conditionality of the support package. Such a strategy, if applied within a rapidly shrinking window of opportunity, can secure both the future prosperity of Greece and its ability to honour the obligations it has already taken on.

Keywords: Greece, banks, debt

Suggested Citation

Mitsopoulos, Michael S. and Pelagidis, Theodore, Understanding the Greek Crisis - Unlocking the Puzzle of Greek Banks’ Deteriorating Performance (January 1, 2010). World Economics, Vol. 12, No. 1, p. 177, January-March 2011, Available at SSRN: https://ssrn.com/abstract=1840584

Michael S. Mitsopoulos (Contact Author)

Hellenic Federation of Enterprises ( email )

Xenofontos str 5
Athens, 10557
Greece
2106722694 (Phone)

Theodore Pelagidis

University of Piraeus ( email )

21 Lambraki street
80 KARAOLI & DIMITRIOU STREET
Piraeus, Attiki 18533
Greece
+3021 04142526 (Phone)
+3021 4142571 (Fax)

HOME PAGE: http://www.maritime-studies.gr/index.php?option=com_comprofiler&task=userProfile&user=95&Itemid=183

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

HOME PAGE: http://www.brookings.edu/experts/pelagidist

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
389
Abstract Views
2,011
Rank
145,144
PlumX Metrics