Is the Greek crisis one of supply or demand?

Yannis Ioannides and Christopher Pissarides

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Greece’s “supply” problems have been present since its accession to the European Union in 1981; the “demand” problems caused by austerity and wage cuts have compounded the structural problems. This paper discusses the severity of the demand contraction, examines product market reforms, many of which have not been implemented, and their potential impact on competitiveness and the economy, and labor market reforms, many of which have been implemented but due to their timing have contributed to the collapse of demand. The paper argues in favor of eurozone-wide policies that would help Greece recover and of linking reforms with debt relief.

JEL-codes: J1 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2015-09
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Citations: View citations in EconPapers (22)

Published in Brookings Papers on Economic Activity, September, 2015, 2015(Fall), pp. 349 - 383. ISSN: 0007-2303

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http://eprints.lse.ac.uk/66908/ Open access version. (application/pdf)

Related works:
Working Paper: Is the Greek Crisis One of Supply or Demand? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:66908

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