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The Greek saga: competing explanations of the Greek crisis

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Abstract

This paper reviews the alternative explanations offered to explain the Greek crisis and checks there analytical and empirical validity. The first part focuses on the mainstream explanations. It distinguishes three main versions (‘Greek disease’, EMU is an unrectifiable non-OCA, EMU has problems but can be rectified). Mainstream explanations are criticized for failing to comprehend properly the deep structural dimensions of the Greek crisis and attributing it to policy errors. The second part reviews the radical explanations and particularly those around the ‘financialization thesis’. It also distinguishes three versions (EMU is the problem, Minskian case, equilibrium of class struggle). These explanations are criticized for offering a weak structural explanation of the Greek crisis by focusing upon policy or conjectural elements. The last part surveys the more classical Marxist explanations of the Greek crisis. These have a different understanding of the relationship between real and financial accumulation from all the previous explanations. Three versions are presented (TRPF, TRPF and underconsumption, TRPF and imperialist exploitation). It is argued that Marxist explanations grasp better than the rest the deep structural dimensions of the Greek crisis.

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  • Mavroudeas, Stavros D., 2015. "The Greek saga: competing explanations of the Greek crisis," Economics Discussion Papers 2015-1, School of Economics, Kingston University London.
  • Handle: RePEc:ris:kngedp:2015_001
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    File URL: http://eprints.kingston.ac.uk/30428/1/2015_001.pdf
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    1. Katrakilidis Constantinos & Trachanas Emmanouil, 2011. "Has the Accession of Greece in the EU Influenced the Dynamics of the Country’s “Twin Deficits”? An Empirical Investigation," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 45-54.
    2. Eckhard Hein & Achim Truger & Till van Treeck, 2011. "The European Financial and Economic Crisis: Alternative Solutions from a (Post-) Keynesian Perspective," IMK Working Paper 9-2011, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    3. Paul Krugman, 2012. "Revenge of the Optimum Currency Area," NBER Chapters,in: NBER Macroeconomics Annual 2012, Volume 27, pages 439-448 National Bureau of Economic Research, Inc.
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    1. Kingston University London Discussion Paper 2015.1: ‘THE GREEK SAGA: COMPETING EXPLANATIONS OF THE GREEK CRISIS’
      by Stavros Mavroudeas in Stavros Mavroudeas blog on 2015-02-12 01:33:21

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    Cited by:

    1. Engelbert Stockhammer & Collin Constantine & Severin Reissl, 2016. "Explaining the Euro crisis: Current account imbalances, credit booms and economic policy in different economic paradigms," Working Papers PKWP1617, Post Keynesian Economics Society (PKES).

    More about this item

    Keywords

    Greek economic crisis; Eurozone crisis;

    JEL classification:

    • B50 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - General
    • 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
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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