An Evaluation of Policies for Fiscal and External Sustainability during the Recent Greek Economic Crisis

Panagiotis Chronis and George Zombanakis

MPRA Paper from University Library of Munich, Germany

Abstract: The scope of this note is to point out that high growth rates must be accompanied by current account surpluses financing the internal debt service as a necessary and sufficient condition for a debt-reduction strategy. The recipe is applied in the case of Greece which, looking back at the pre-crisis period, has been experiencing substantial consumption-led growth following extensive foreign borrowing.

Keywords: Twin Deficits; Debt; Sustainability (search for similar items in EconPapers)
JEL-codes: E63 (search for similar items in EconPapers)
Date: 2016-01-30, Revised 2016-01-30
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (6)

Published in European Research Studies 1.XIX(2016): pp. 30-47

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Journal Article: An Evaluation of Policies for Fiscal and External Sustainability during the Recent Greek Economic Crisis (2016)
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