EconPapers    
Economics at your fingertips  
 

EMU and the Greek crisis: Are there lessons to be learnt?

Thomas Moutos () and Margarita Katsimi

No 1134, DEOS Working Papers from Athens University of Economics and Business

Abstract: We describe the political-economic environment that precipitated the Greek crisis. Involved were nocuous collaborations between private interests and the formally appointed custodians of the public interest, and a captured politicized bureaucracy. The confluence of these forces aided in the pilfering of public funds, allowed rampant tax evasion, and sanctioned the deterioration in the quality of publicly provided goods. From a macroeconomic perspective, the failure of successive Greek governments to reverse the decline in the national saving rate, and not the government budget deficit per se, is the main reason for the crisis. The inability of EMU authorities to react to portents of Greek failure, such as ongoing large current account deficits that were not hidden by �Greek statistics�, expose a major fault line in the EMU�s design and implementation through the Stability and Growth Pact.

References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://wpa.deos.aueb.gr/docs/KatsimiMoutos.doc First version (application/msword)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:aue:wpaper:1134

Access Statistics for this paper

More papers in DEOS Working Papers from Athens University of Economics and Business Contact information at EDIRC.
Series data maintained by Ekaterini Glynou ().

 
Page updated 2017-08-25
Handle: RePEc:aue:wpaper:1134