LOOKING FOR TRUST: The weak accumulation in Greece during the 19th century

Using long term statistical series for Greece, the study locates and discusses the adjustments that took place in Greece during the 19th century in order to stabilize the economy, accumulate foreign reserves to support the viability of the currency regime and, thus, regain access to international markets. Most of the time the effort was fruitless and, finally led to bankruptcy in 1893. Then, in 1898 the International Economic Control was imposed to redress public finances and prepare the country for a more credible and lasting participation in the Gold Standard that finally takes place in 1910. Despite the fact that the Banking system and the process of accumulating foreign exchange reserves were following sensible rules, accumulation was so weak that the inability to achieve creditworthiness and trust among the more developed economies in Europe became endemic and left Greece without the precious access to capital and bond markets in Western Europe.