The political economy of the Greek debt crisis: a tale of two bailouts

Ardagna, Silvia and Caselli, Francesco ORCID: 0009-0001-5191-7156 (2014) The political economy of the Greek debt crisis: a tale of two bailouts. American Economic Journal: Macroeconomics, 6 (4). pp. 291-323. ISSN 1945-7707

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Abstract

We review the events that led to the May 2010 and July 2011 bailout agreements. We interpret the bailouts as outcomes of political-economy equilibria. We argue that these equilibria were likely not on the Pareto frontier, and sketch political-economy arguments for why collective policymaking in the Euro area may lead to suboptimal outcomes.

Item Type:	Article
Official URL:	https://www.aeaweb.org/aej-macro/
Additional Information:	© 2014 American Economic Association
Divisions:	Economics Centre for Economic Performance
Subjects:	H Social Sciences > HJ Public Finance
JEL classification:	E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook > E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation F - International Economics > F3 - International Finance > F34 - International Lending and Debt Problems H - Public Economics > H6 - National Budget, Deficit, and Debt > H61 - Budget; Budget Systems H - Public Economics > H6 - National Budget, Deficit, and Debt > H63 - Debt; Debt Management
Date Deposited:	10 Nov 2014 10:59
Last Modified:	25 May 2025 07:51
URI:	http://eprints.lse.ac.uk/id/eprint/60112

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