Greece 's Macroeconomic Crisis : Causes And Effects On The European Economy

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The Greek 's Macroeconomic Crisis - Causes and the impact on the European Economy How is it possible for an economy, associate of the Eurozone, that was considered to be an achievement of junction in Europe for more than a decade to turn out to be considered a deep fiasco in the early 2010 and undergo a profound and exceptional financial catastrophe, in which it vanished nearly 25% of its GDP in a time frame of 5 years. Observation of the Greek economy by global policy makers and markets changed significantly in a period of a few months. It was an uncommon episode in financial history that merits a closer analysis in order to evade alike conditions in the future. The understanding or the perceptions about the reasons of the crisis define to a great degree the policy answer to the crisis. The debate about the policy mix develops a more complex issue when the origins of the crisis are both national and European. The policies that were applied in order to challenge it and particularly about the strength of the affiliation among the roots of the disaster and the policy reaction mix. Finally, it would definitely benefit us all to know if there was a substitute policy response track. An inspection ordered by the recently chosen Socialist administration, exposed how public deficit for 2009 was stated to be 5.4% of GDP instead of roughly 6% specified by the preceding administration. The cost of borrowing started to rise intensely and monetary markets shut for Greece in a period

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