An Evaluation of Policies for Fiscal and External Sustainability during the Recent Greek Economic Crisis
European Research Studies Journal, Volume XIX, Issue 1, 32-43, 2016
Abstract:
The scope of this note is to point out that high growth rates must be accompanied by current account surpluses financing the internal debt service as a necessary and sufficient condition for a debt-reduction strategy. The recipe is applied in the case of Greece which, looking back at the pre-crisis period, has been experiencing substantial consumption-led growth following extensive foreign borrowing.