ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
Reader Mode
-A A +A

Economic Turbulence in Greece

The current approaches to the Greek and eurozone crises that are being pushed by Germany, France and the European Union are failing because they suffer from a fatal misdiagnosis. The central problem is not profligate spending in the periphery, but the very set-up of the European Monetary Union. Without attending to current account imbalances within the eurozone, austerity will be self-defeating. Deflation and depressed growth will heighten the debt problem while continuing to ignite social ruin. The eu must become an entity with a unified and expanded fiscal policy and a central bank willing and able to act as lender of last resort. If austerity and structural reform continue to be the only options, Greece will bear witness to a lost generation and a likely end to the euro project in its present form.

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

649for India

$20for overseas users

Get instant access to the complete EPW archives

Subscribe now


(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top