The Greek public debt problem

Nikiforos, Michalis; Papadimitriou, Dimitri; Zezza, Gennaro

doi:10.1590/0103-6351/3552

Cited by 16 publications

(9 citation statements)

References 10 publications

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“…Such a 2 The literature on the Eurozone and the Greek crisis is extensive and much of it is not directly relevant to our purposes. For the theoretical and empirical analysis that supports this paper, see Lapavitsas, Mariolis, and Gavrielidis (2017); for a useful empirical summary of the crisis along more mainstream, lines, see Gourinchas, Philippon and Vayanos (2016); for additional penetrating observations on the macroeconomic policies applied to Greece, see also Nikiforos, Papadimitriou and Zezza (2016).…”

Section: The Persistent Spectre Of Emu Exitmentioning

confidence: 74%

The redenomination risk of exiting the Eurozone: An estimation based on the Greek case

Lapavitsas

2018

European Law Journal

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Changing a country's currency involves a redenomination risk arising due to assets and liabilities that are impossible to redenominate because of contracts governed by foreign law. Depreciation or appreciation of the new currency could, therefore, result in losses or gains, thus creating a risk for economic agents. The risk can be estimated by splitting the economy into public, private, banking and central banking sectors, and summing up exposed aggregate assets and liabilities. This method is applied to Greece showing that exiting the EMU would certainly entail forbidding redenomination losses for the Greek public sector, leading to default. Surprisingly, however, the impact on the private and the banking sectors would actually be positive (gain). The impact on the Bank of Greece would be ambiguous depending primarily on the legal status of TARGET2 liabilities. It is notable that even the Bank of Greece possesses a significant cushion in the form of bonds under foreign law. In all, the redenomination risk for the Greek economy is modest, with the exception of the public sector.

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Section: The Persistent Spectre Of Emu Exitmentioning

confidence: 74%

The redenomination risk of exiting the Eurozone: An estimation based on the Greek case

Lapavitsas

2018

European Law Journal

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“…Essentially the same point could also be made in terms of the “real exchange rate” of Greece, which has recorded a substantial real appreciation from the late 1990s to the late 2000s (see Nikiforos, Papadimitriou, and Zezza 2016). The main factors making for appreciation in the 2000s were, first, the higher rate of inflation compared with Germany and, second, the nominal appreciation of the euro compared with the dollar.…”

Section: Facing a Balance Of Payments Crisis Within The Eurozonementioning

confidence: 86%

Political Economy of the Greek Crisis

Lapavitsas

2018

Review of Radical Political Economics

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The Greek turmoil commenced as a balance of payments, or "sudden stop", crisis induced by large current account and primary government deficits. It became an economic and social disturbance of historic proportions. Its proximate cause was loss of competitiveness within the Eurozone due primarily to domestic German wage policies. The bail-out policies, imposed by the lenders primarily for reasons of Eurozone stability and adopted by Greece, have had disastrous effects on both economy and society. The "historical bloc" that dominates Greek society willingly submitted to this strategy, losing sovereignty, for reasons including fear and identity.

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“…Furtado postulates the need to "provide the government with a fiscal instrument that enables it to finance its growing investments with resources collected in those sectors that are actually benefiting from development, which is the result of the work of the entire community" (Furtado, 1962, p. 45). The inflation problem, however, persisted in the country's most promising decades and apparently was very similar to the current public debt problem in some economies (Dweck et al, 2018;Nikiforos et al, 2015), as we can see from Furtado's diagnosis in the following passage:…”

Section: What Does Furtado's Bibliography Say About Structural Reforms?mentioning

confidence: 87%

A keyword on the footer: the Furtadian and the (re)current meaning of structural reforms

Cardoso

2022

Brazil. J. Polit. Econ.

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A semantic change has occurred in the scope of structural reforms’ term. This article reviews Celso Furtado’s work, in particular, the ones related to this specific topic, and compares it with the current literature. It appears that structural reforms in the Furtadian conception connoted base transformations and were guided by the developmentalism school of thought. Nowadays, it is of general knowledge that, under the new-institutionalist influence, “structural reforms” are associated with liberal policies for monitoring fiscal consolidations, without consensus as to the power of effectiveness. The effort to rescue and understand the original conceptions of certain keywords in the economic development literature, as well as the way in which their interpretations and practices modify over time, is shown to be of paramount importance as the capitalist system struggle to find ways of adapting itself to the current situation of developing economies.

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The Greek public debt problem

Cited by 16 publications

References 10 publications

The redenomination risk of exiting the Eurozone: An estimation based on the Greek case

The redenomination risk of exiting the Eurozone: An estimation based on the Greek case

Political Economy of the Greek Crisis

A keyword on the footer: the Furtadian and the (re)current meaning of structural reforms

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