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

Abstract

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

Arghyrou, Michael, Is Greece Turning the Corner? A Theory-Based Assessment of Recent Greek Macro-Policy (September 30, 2014). CESifo Working Paper Series No. 4995. Available at SSRN: https://ssrn.com/abstract=2507746

Michael Arghyrou (Contact Author)

University of Piraeus ( email )

Karaoli & Dimitriou 80
Piraeus, 18534
Greece
19 (Fax)

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