State-driven in Boom and in Bust: Structural Limitations of Financial Power in Greece

Pagoulatos, George

doi:10.1017/gov.2014.6

Cited by 8 publications

(3 citation statements)

References 31 publications

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“…Starting from the late 1980s, the Greek government welcomed financial liberalization and reduced regulation on finance. This served two purposes (Pagoulatos 2014): a tool to combat inflation internally and fulfillment of requirements to enter the European Union externally. However, with deteriorated competitiveness after integration into the European Union, Greece became locked on to the lower end of the global production network like many other peripheral countries (Becker et al 2010).…”

Section: Features Of Financial Expansion In Greecementioning

confidence: 99%

The Greek Crisis Under Structural Constraints

Xie

Wang

Zhi

2023

Review of Radical Political Economics

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This article studies the Greek crisis since 2009 with a synthesized Marxian framework by embedding the Greek capital accumulation process into the capitalist core-periphery structure in the European Union, which deteriorated the competitiveness of Greece and adversely impacted its capital accumulation, leading to a relatively low profit rate in the neoliberal era. Institutions of the European Union helped Greece turn to debt-driven accumulation to sustain growth, especially the external debt of government, but the weak productive accumulation because of relatively low profit rate made the accumulation of debt unsustainable in the long run. When doubt was cast on Greece’s capacity to repay its debts, the economy lost external sources of funding, leading to a halt in debt expansion and the burst of the sovereign debt crisis. JEL Classification: E11, F02, O10

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Section: Features Of Financial Expansion In Greecementioning

confidence: 99%

The Greek Crisis Under Structural Constraints

Xie

Wang

Zhi

2023

Review of Radical Political Economics

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“…These deficits were maintained after the introduction of the euro, due to the ability of the public sector to borrow from the international financial markets with relatively low cost. So, public debt increased, whilst the private sector, which was characterized by low competitiveness, moved also in the same direction of (relative) over-indebtedness (Pagoulatos, 2014). The global financial crisis of 2007/2008, however, and the shrinkage of international liquidity, combined with the diachronic "twin" deficits' problem of the Greek economy, and also with a range of policy decisions and changes, made the funding of the country from the international markets difficult, if not impossible.…”

Section: Introduction mentioning

confidence: 99%

Fiscal Council and Pre-election Platforms Evaluation: A Scenario for Greece

Triantopoulos¹,

Athanasios²

2017

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The crisis of the Greek economy underlined the structural deficiency of the domestic growth model that was depicted to the wide "twin-deficit" problem of a statist market economy. The core of the domestic growth model is the role of the public sector which, inter alia, was characterized by high and permanent fiscal deficits, low efficiency, and steady divergence from an advanced welfare state. During the 2010-2015 adjustment effort, fiscal adjustment was the critical dimension of the effort in order to stabilize public finances at a sustainable level and significantly reduce the financial needs. The sustainability, however, of public finance stabilization is determined by the structural reforms in the fiscal policy framework and the public financial management framework. One of the structural fiscal reforms was the new law for the establishment of the Hellenic Fiscal Council in 2014 following the European institutional framework. The paper discusses the strong harmonization of electoral cycle and fiscal deterioration and analyses the scenario of enhancing the Fiscal Council's responsibilities in Greece with the evaluation of the pre-election platforms. In particular, the paper, taking into account the characteristics of the Greek political economy, focuses on the critical prerequisites so as this scenario to become a real structural reform. These institutional and political prerequisites are institutional independence, political independence, functional independence, broad political acceptance, "adjustment period", and clarity of rules and evaluation procedures. So, even though the evaluation of pre-election economic programs seems ultra-difficult for the case of Greece, it should not be set aside as unachievable in the long run.

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“…Finally, while a major purpose of the issue is to ‘recapture’ the study of financial power for political science, we wanted also to recognize the diversity of traditions and preoccupations that already mark the study of financial power, especially in political economy. Thus, the articles by Woll (2014) and by Pagoulatos (2014) explore issues of power by examining in detail the impact of the great crisis on important European systems. Bell and Hindmoor (2014) make perhaps the most explicit effort to connect the study of financial power to the established language of political science analysis.…”

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confidence: 99%