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Seven Myths about the Greek Debt Crisis

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  • Stergios Skaperdas

    (Department of Economics, University of California-Irvine)

Abstract

In Greece and other countries of the eurozone there are a number of misconceptions about the debt crisis. I argue against seven of such misconceptions (or, myths) about the effects of default, the primary cause of the crisis, the likely effects of an exit from the eurozone, the bargaining power of the Greek government in its negotiations with the EU/ECB/IMF troika, and others. Default and exit from the eurozone appears to be the most viable alternative in the long run; such a move would seem to require considerable preparation under short time constraints and a government with broad political support.

Suggested Citation

  • Stergios Skaperdas, 2011. "Seven Myths about the Greek Debt Crisis," Working Papers 111202, University of California-Irvine, Department of Economics.
    • Handle: RePEc:irv:wpaper:111202
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    File URL: https://www.economics.uci.edu/files/docs/workingpapers/2011-2012/skaperdas-02.pdf
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    References listed on IDEAS

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    1. Kevin Hjortshøj O’Rourke, 2014. "A Tale of Two Trilemmas," Palgrave Macmillan Books, in: Louis Brennan (ed.), Enacting Globalization, chapter 26, pages 287-297, Palgrave Macmillan.
    2. Stergios Skaperdas, 2011. "Policymaking in the Eurozone and the Core vs Periphery Problem," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(02), pages 12-18, July.
    3. Katsimi, Margarita & Moutos, Thomas, 2010. "EMU and the Greek crisis: The political-economy perspective," European Journal of Political Economy, Elsevier, vol. 26(4), pages 568-576, December.
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    Cited by:

    1. Stergios Skaperdas, 2015. "Myths and Self-Deceptions about the Greek Debt Crisis," Revue d'économie politique, Dalloz, vol. 125(6), pages 755-785.
    2. Mariolis, Theodore & Katsinos, Apostolis, 2011. "Return to devalued drachma, cost-push inflation and international competitiveness," MPRA Paper 35413, University Library of Munich, Germany.
    3. Costas Lapavitsas, 2019. "Political Economy of the Greek Crisis," Review of Radical Political Economics, Union for Radical Political Economics, vol. 51(1), pages 31-51, March.
    4. Mavrozacharakis, Emmanouil & Tzagarakis, Stelios, 2017. "The impact of “anti-political” parties after the restoration of democracy in Greece and the challenge of confronting the crisi," MPRA Paper 79398, University Library of Munich, Germany.

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    More about this item

    Keywords

    Eurozone; Greece; debt; default;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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