{"id":2549,"date":"2018-04-01T17:46:47","date_gmt":"2018-04-01T14:46:47","guid":{"rendered":"http:\/\/hardouvelis.gr\/?p=2549"},"modified":"2023-10-17T15:01:07","modified_gmt":"2023-10-17T12:01:07","slug":"the-doom-loop-of-a-sovereign-and-a-banking-crisis-part-1","status":"publish","type":"post","link":"https:\/\/hardouvelis.gr\/el\/the-doom-loop-of-a-sovereign-and-a-banking-crisis-part-1\/","title":{"rendered":"The Greek Banking Crisis Part 1: The Doom Loop of a Sovereign and a Banking Crisis"},"content":{"rendered":"<p class=\"qtranxs-available-languages-message qtranxs-available-languages-message-el\">\u0395\u03b3\u03b3\u03c1\u03b1\u03c6\u03ae \u03b4\u03b9\u03b1\u03b8\u03ad\u03c3\u03b9\u03bc\u03b7 \u03c3\u03c4\u03b1 <a href=\"https:\/\/hardouvelis.gr\/en\/wp-json\/wp\/v2\/posts\/2549\" class=\"qtranxs-available-language-link qtranxs-available-language-link-en\" title=\"English\">English<\/a>. For the sake of viewer convenience, the content is shown below in the alternative language. You may click the link to switch the active language.<\/p><p><strong>The Greek Banking Crisis Part 1: The Doom Loop of a Sovereign and a Banking Crisis<\/strong><br \/>\nGikas Hardouvelis<br \/>\nThe National Herald<br \/>\n<em>March 30, 2018<\/em><\/p>\n<h3>Introduction<\/h3>\n<p>Greece suffers a double crisis, a sovereign and a banking one.\u00a0 Each crisis has fed on the other in a vicious doom loop.\u00a0 The sovereign crisis forced the State to strictly tighten its belt and brought a huge recession.\u00a0 The recession\/depression deprived many Greek enterprises and households the earnings necessary to pay back their loans to the banks. Households even withdrew their deposits from the banks.\u00a0 As a consequence, banks were deprived of liquidity and capital and were thus forced to cut back their lending, causing the recession to deepen.<\/p>\n<p>Has this doom loop ended?\u00a0 Is the current feeble Greek economic recovery sufficient to turn the earlier doom loop into a virtuous cycle with higher bank profitability, more lending activity and even higher economic growth?\u00a0 The answer is not straightforward.\u00a0 It requires an in depth look into the history of the banking crisis of the last decade as well as the current workings of the banks and the State.<\/p>\n<p>The present essay is partitioned into two independent and self-contained articles.\u00a0 The first article reviews the history of the Greek banking crisis and gives the reader a good grasp of how the banking system evolved into its present shape. The second article assesses its present health and its future prospects.<\/p>\n<p><a href=\"https:\/\/www.thenationalherald.com\/195656\/the-doom-loop-of-a-sovereign-and-a-banking-crisis-by-gikas-hardouvelis\/\" target=\"_blank\" rel=\"noopener\">Read article at The National Herald, New York<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>\u0395\u03b3\u03b3\u03c1\u03b1\u03c6\u03ae \u03b4\u03b9\u03b1\u03b8\u03ad\u03c3\u03b9\u03bc\u03b7 \u03c3\u03c4\u03b1 English. For the sake of viewer convenience, the content is shown below in the alternative language. You<\/p>\n","protected":false},"author":1,"featured_media":4651,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[11,8],"tags":[3243,3241],"yst_prominent_words":[349,229,341,342,89,344,339,353,345,360,359,358,343,356,357,346,351,347,340,348],"class_list":["post-2549","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-press-articles","tag-articles","tag-recent-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/posts\/2549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/comments?post=2549"}],"version-history":[{"count":3,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/posts\/2549\/revisions"}],"predecessor-version":[{"id":2553,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/posts\/2549\/revisions\/2553"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/media\/4651"}],"wp:attachment":[{"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/media?parent=2549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/categories?post=2549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/tags?post=2549"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/yst_prominent_words?post=2549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}