Sunday, February 26, 2012

The Greek Economic Drama: An Almost Perfect Austrian Application

by Mike G. Tsionas

Athens University of Economics and Business

Department of Economics
January 2012

Possibly due to lack of reliable data an analysis of the Greek economic crisis in the context of the eurozone, along the lines of the Austrian theory, is not available. In this paper we employ the most recent data on money, credit, industrial production and productivity to show that the Greek drama is an almost ideal application of the Austrian ideas. Long term money and credit expansion along with expansion in the middle of the recession up to end of 2010, have distorted substantially the time structure of production resulting in low profitability, employment and output, high public deficits, and explosion of public debts.

Read the Paper

No comments: