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How to Handle the Fiscal Crisis in Greece: Empirical Evidence Based on a Survey of Economic Experts

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  • Martin Mosler
  • Niklas Potrafke
  • Markus Reischmann

Abstract

We asked economic experts polled by the CESifo World Economic Survey how to handle the fiscal crisis in Greece in the year 2015. The sample includes about 850 experts from 110 countries. We find systematic differences in experts’ recommendations. Our results suggest that policy advice is related to an expert's personal and country‐level attributes. Country‐level characteristics, especially credit default swaps as a measure of fiscal stability, predict views on whether Greece should exit the eurozone. An expert's educational background, age and professional affiliation predict opinions on the credit programmes of the International Monetary Fund. We propose that policymakers who seek balanced policy advice should consult experts from different countries and personal backgrounds.

Suggested Citation

  • Martin Mosler & Niklas Potrafke & Markus Reischmann, 2019. "How to Handle the Fiscal Crisis in Greece: Empirical Evidence Based on a Survey of Economic Experts," Fiscal Studies, John Wiley & Sons, vol. 40(3), pages 375-399, September.
  • Handle: RePEc:wly:fistud:v:40:y:2019:i:3:p:375-399
    DOI: 10.1111/1475-5890.12197
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    File URL: https://doi.org/10.1111/1475-5890.12197
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    Cited by:

    1. Marios-Georgios PSYCHALIS, 2020. "Euro Plus Pact: The Greek Case," Noble International Journal of Economics and Financial Research, Noble Academic Publsiher, vol. 5(10), pages 102-124, October.
    2. Arnemann, Laura & Konrad, Kai A. & Potrafke, Niklas, 2021. "Collective Memories on the 2010 European Debt Crisis ," CEPR Discussion Papers 15683, C.E.P.R. Discussion Papers.

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    More about this item

    JEL classification:

    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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