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An Evaluation of Policies for Fiscal and External Sustainability during the Recent Greek Economic Crisis

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  • Chronis, Panagiotis
  • Zombanakis, George A.

Abstract

The scope of this note is to point out that high growth rates must be accompanied by current account surpluses financing the internal debt service as a necessary and sufficient condition for a debt-reduction strategy. The recipe is applied in the case of Greece which, looking back at the pre-crisis period, has been experiencing substantial consumption-led growth following extensive foreign borrowing.

Suggested Citation

  • Chronis, Panagiotis & Zombanakis, George A., 2016. "An Evaluation of Policies for Fiscal and External Sustainability during the Recent Greek Economic Crisis," MPRA Paper 74536, University Library of Munich, Germany, revised 30 Jan 2016.
    • Handle: RePEc:pra:mprapa:74536
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    References listed on IDEAS

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    Cited by:

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    2. repec:ers:journl:v:vi:y:2018:i:3:p:92-97 is not listed on IDEAS
    3. George Michalopoulos & Konstantinos Tsermenidis, 2018. "Country Risk on the Bank Borrowing Cost Dispersion Within the Euro Area during the Financial and Debt Crises," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 76-92.
    4. Nikolaos Papanikolaou, 2018. "Geopolitical Implications of an Economical Force Affected by the Eurozone Crisis: The Case of Cyprus," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 92-97.
    5. M. Zholamanova & M. Arzayeva R. Doszhan & A. Turlybekova A. Kukiev, 2018. "Devaluation in Kazakhstan: History, Causes, Consequences," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 831-842.
    6. repec:ers:journl:v:vi:y:2018:i:4:p:76-92 is not listed on IDEAS

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    More about this item

    Keywords

    Twin Deficits; Debt; Sustainability;
    All these keywords.

    JEL classification:

    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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