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

Ardagna, Silvia and Caselli, Francesco (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
Subjects:	H Social Sciences > HJ Public Finance
Sets:	Departments > Economics Collections > Economists Online Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited:	10 Nov 2014 10:59
Last Modified:	12 Apr 2016 10:15
URI:	http://eprints.lse.ac.uk/id/eprint/60112

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