Overview of the Greek Crisis
CEPR European Conference on Household Finance 2019, Rodos Palace Hotel
Friday, September 20, 2019
The Greek crisis is characterized by two phases
- Economic disequilibria bring Crisis Phase-I in 2009
- Then economy adjusts & disequilibria are cured after two economic adjustment programs, a major public debt restructuring and two bank recapitalizations
- Then bad politics brings Crisis Phase–II in 2015: The country risks GREXIT; capital controls, a 3rd unnecessary economic adjustment program & a 3rd bank recapitalization arrive
The crisis is over but no quick recovery in sight
- Capital controls were lifted on Sept 1, 2019
- Can we jump start the economy?
- What are the key challenges?