Is the Greek crisis one of supply or demand?

Ioannides, Yannis M. and Pissarides, Christopher ORCID: 0000-0002-0695-058X (2015) Is the Greek crisis one of supply or demand? Brookings Papers on Economic Activity, 2015 (Fall). 349 - 383. ISSN 0007-2303

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Abstract

Greece’s “supply” problems have been present since its accession to the European Union in 1981; the “demand” problems caused by austerity and wage cuts have compounded the structural problems. This paper discusses the severity of the demand contraction, examines product market reforms, many of which have not been implemented, and their potential impact on competitiveness and the economy, and labor market reforms, many of which have been implemented but due to their timing have contributed to the collapse of demand. The paper argues in favor of eurozone-wide policies that would help Greece recover and of linking reforms with debt relief.

Item Type:	Article
Official URL:	http://www.brookings.edu/about/projects/bpea
Additional Information:	© 2015 Brookings Institution Press
Divisions:	Economics
Subjects:	H Social Sciences > HB Economic Theory
Date Deposited:	14 Jun 2016 16:05
Last Modified:	12 Dec 2024 01:00
URI:	http://eprints.lse.ac.uk/id/eprint/66908

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