The Greek Debt Crisis: Likely Causes, Mechanics and Outcomes

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Greek Debt Crisis: Likely Causes, Mechanics and Outcomes Terms of use: Documents in AbstractWe use insights from the literature on currency crises to offer an analytical treatment of the crisis in the market for Greek government bonds. We argue that the crisis itself and its escalating nature are very likely to be the result of: (a) steady deterioration of Greek macroeconomic fundamentals over 2001-2009 to levels inconsistent with long-term EMU participation; and (b) a double shift in markets' expectations, from a regime of credible commitment to future EMU participation under an implicit EMU/German guarantee of Greek fiscal liabilities, to a regime of non-credible EMU commitment without fiscal guarantees, respectively occurring in November 2009 and February/March 2010. We argue that the risk of contagion to other periphery EMU countries is significant; and that without extensive structural reforms the sustainability of the EMU is in question. JEL-Code: F31, F33, F34, F41, F42, F50.

Do not say a word! Conceptualizing employee silence in a long-term crisis context

“…This problem intensified in June 2015 when capital controls were implemented in an effort to stop a likely bank run due to the political instability in the country (Samitas & Polyzos, 2016). Moreover, increased layoffs and decreased salaries have led to high uncertainty and employee dissatisfaction especially within SMEs (Arghyrou & Tsoukalas, 2010). This resulted in fewer people being employed by SMEs, and therefore increased levels of workload and pressure for those remaining (INE/GSEE, 2013), with bullying behaviors observed between employer to employee, manager to employee and among employees (Galanaki & Papalexandris, 2013;Kanellopoulos, 2012).…”

“…The effects of this long-term crisis are critically negative for many Greek companies (Arghyrou & Tsoukalas, 2010), especially Small and Medium-Sized Enterprises (SMEs) (OECD, 2016a). The Greek business system is dominated by SMEs, mostly small (counting less than 50 employees) family businesses with concentrated ownership structures within a few large holders (Prouska & Kapsali, 2011).…”

A qualitative survey for the academic libraries in the throes of a great recession

“…Regarding Greece, the economic crisis appeared in 2009, and has been actually related to innate structural deficiencies of the Greek public sector and its potential inability to control its ballooning debt [3].In a broader sense, however, this is a Euro zone economic crisis related to the European Monetary Union (EMU) structure as well as in the strategy for safeguarding a "good euro" as a world currency. Greece was forced to resort to the Financial Support Mechanism in March 2010, with the participation of other Eurozone countries, the European Central Bank (ECB) and the International Monetary Fund (IMF).…”

“…Greece was forced to resort to the Financial Support Mechanism in March 2010, with the participation of other Eurozone countries, the European Central Bank (ECB) and the International Monetary Fund (IMF). After five years of recession in Greece, the current economic crisis has influenced every aspect of the public and private life, leading to a decrease in the living standards of most citizens and to new consumer patterns, reinforcing feelings of uncertainty, and most significantly creating a different social and cultural framework [3].…”

The Eurozone needs exit rules

“…In doing so, we rely on Fahrholz (2007); further, e.g., Fahrholz and Wójcik (2012) and Arghyrou and Tsoukalas (2010) deal particularly with the Greek sovereign debt crisis.…”