Is Greece Turning the Corner? A Theory-Based Assessment of Recent Greek Macro-Policy
44 Pages Posted: 9 Oct 2014
Date Written: September 30, 2014
We use a macro-theory framework of analysis to assess Greek macro-policy with emphasis on the period of the Greek debt crisis. The latter is mainly the result of misguided past internal policies deviating from the policy lessons of modern macroeconomics. The current policy, however, provides a credible platform for sustainable growth. Greece has entered the process of economic recovery but this is fragile and exposed to risks. We conclude that although a country’s currency is not per-se determining growth, supply-side reforms and institutional performance are; and for Greece both are better served within the EMU rather than outside.
Keywords: macroeconomics, Greece, euro
JEL Classification: B220, E000, F400
Suggested Citation: Suggested Citation