Greek Vs. Greek Government

together can be a bad action taken by the government. The reason I say this is because, in economic terms, reduction in government spending and increasing tax collection at the same time is like hitting someone with two hammers together. This will only lead to a shift to the left of aggregate demand and is it impossible for the people to pay taxes when the living standards is low. (Figure 2)

Greece has many historical aspects such as the acropolis where many polytheistic worshipers came to worship the Gods, the first Olympics, as well as the first democracy, however one question that the whole world is asking is “will Greece’s debt soon be history”? The prime minister, Alexis Tripras, is unwilling to pay of the billions of euros of its debt. Germany and France has loaned billions of euros and are now trying to create a plan to solve this problem. The International Monetary Fund, European Central Bank and other organizations have declined all of Greece’s request for more loans. Although the majority countries in the world have debt, Greece has been loaned billions of euros from many european countries, the EU, and other international organizations; this is a problem because this country is doing all in its power to accept more grants, unwilling to give the overdue credits back.

In 2014, the unemployment rate in the United States was 6.2% oppose to 26.6% in Greece . This leads to a plethora of problems beginning with the overall health of the economy. Greece’s unemployment rate may have something to do with their

Greece is one of the most developed countries but today it has a debt of over 300 billion Euros which began two years ago including purchasing power parity. Greece is ranked 38th and 44th in the world for nominal GDP and purchasing power parity (PPP). The base for Greek crisis is mix of domestic and international factors. Locally incorporates high government spending, auxiliary rigidities, charge avoidance and defilement. Greece was a standout amongst the most seriously hit nation among the EU. The nation 's biggest commercial enterprises are

Two bailouts later, with the third quickly approaching, Greece has shown the European Union that its austerity measures are not a viable or sustainable option for debt relief. With the spiraling decline of investor confidence in an economy severely trapped by debt, Greece has been under threat of being dismissed from the European Union. As of July 14, 2015, Greece’s third European Union bailout was left just out of arms reach until the nation follows through with, what has been termed ‘Draconian,’ reforms aimed at minimalizing Greece’s debt. Although Greece makes up just 2% of the European Union population, its weighted economy and potential impact on the global economy is on everyone’s mind.

On January 1st of 1981, Greece became the tenth state to join the European communities (which eventually turned into the European Union of today’s age,) and led the country into a period of rapid growth. Large investments in industrial enterprises and heavy infrastructure, combined with funding from the European Union and increased revenues from tourism and exports, increased the standard of living to an unprecedented level. Everything seem to be going well for Greece, as it was beginning to prosper after the democratic transition from the military dictatorship of 1967. It had become a model for how the European Union could be beneficial, and encourage other states to join. After the brief two decades of economic flourishment, Greece

This time is different: Eight Centuries of Financial Folly, written by Carmen M. Reinhart and Kenneth S. Rogoff, was published just before Greece went into crisis. Just as they satiric title illustrated, so most people believe that Greece will never default again because “this time is different due to the wealthy ally within the EU”, but the Greece crisis came out immediately and strongly prove Reinhart & Rogoff’s statement “this time usually isn’t different and catastrophe eventually strikes again”.(journal1) This book is designed to cater to the desires of many governments that are enthusiastic about austerity and becomes the most influential economic analysis book around recent years.(paul letter2) In this essay, I will give a brief view of Reinhart-Rogoff’s theory and explore some criticisms of R-R’s work, and then summarizes their defences against those criticisms.

The unintended consequences of the Greece’s crisis are of a great extent, yet it has a small economy, responsible for only 2.4% of the total Euro zone GDP. Essentially, Greece’s crisis has disclosed some uncertainties communicated and created by a group of different countries sharing a common currency and monetary policy, while maintaining national fiscal policies. It has one of the biggest budget deficit and the highest levels of public debt in the Euro zone. It was the first to turn to other Euro zone member states financial backing and the first to come under extreme market burdens.

Greece as an economy was doing very well until the global economy crashed in 2008 due to “Global Financial Crisis (GFC)”. During the period of 2001- 2007, Greece was one of the high growth economies in the European Union (EU) with nominal Gross Domestic Product (GDP) growing at an average rate of around 7% per annum and real GDP growing at a rate of 4.2% per annum which was more than the growth in EU. The GFC was a result of

There was a downgrade of the Greek government in April 2010 that alarmed the financial markets. Bond yields rose so high that private capital markets were no longer an option for Greece as a support foundation. In May 2010, the Eurozone countries and the International Monetary Fund gave Greece a “bailout loan” of $110 billion, conditional on compliance with 3 conditions 1.)restore fiscal balance 2.) privatization of government assets worth $50 billion by the end of 2015 to be sustainable 3.) to improve competitiveness and growth prospects. Sadly, Greece worked slower than expected and they needed another year offer and more

It is a fact that, despite the reluctant signs of recovery in Greek economy, unemployment rate remains at its highest levels since the beginning of the crisis (27, 2% May 2014).Also Greece has one of the

Greece has a debt of more than 350 Billion Euros or close to 175% of its GDP. Its annual interest obligation is close to 23 Billion Euros. Unemployment is more than 25% and its annual GDP is declining by 2% per year. Greece is clearly in a grave crisis situation which is extremely hard to overcome. On June 30th, it became the first developed country to default to make an IMF loan repayment. It is in an urgent need of funds to make another loan repayment to European Central Bank on 20th August, to the tune of 3.2 Billion Euros. Its credit ratings have been recently revised by all agencies to the level of ‘Junk Bonds’, making it extremely hard to obtain financial help.

This section aims to discuss the root of two aspects of the Greek debt crisis.

Since October 2009, Hellenic Republic has been experiencing effects of the recent money turmoil and also the temporal order of the response of Europe to the Greek business crisis. a lot of specifically, the Eurozone Governments did not provides a clear signal indicating their readiness to support Hellenic Republic, whereas the Greek business crisis was escalating. Legal skepticism and queries like “are bailouts illegal?” were raised, principally by European country, for a problem that was partially political.

The burden of debt in the European Union, especially in Greece and Ireland, is detrimental to the continent 's economy and people. Not only is it an issue throughout Europe itself, but it has become a dominant issue in global economics as well. As these European governments struggle to get back on their feet, the fate of the euro is clinging for life. It has become clear of the extremely high deficits, some at over 100% GDP, which are attached to several EU countries. This European crisis is a continuation of the global financial crisis, but also an issue which was brought upon themselves, largely by Greece. The Greek government