Marica Frangakis: Public Debt Crisis, Austerity and Deflation: The Case of Greece

Greece is the country in which the eurozone’s public debt crisis began in late 2009. The policy response of the EU elites was to provide financial assistance on condition that a strict austerity-cum-deregulation policy is applied under the watchful guidance of the European Commission, the European Central Bank and the IMF (the so-called Troika). Five years later, the country is in an economic, social and political limbo, as a debt Deflation process has set in. More

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Judith Dellheim

Rosa-Luxemburg-Stiftung, Referentin Solidarische Ökonomie

One thought on “Marica Frangakis: Public Debt Crisis, Austerity and Deflation: The Case of Greece”

  1. The excellent and highly interesting paper helps asking some important questions forcing the workshop debate:
    1. On page 295 (or on the first page) we may read: „It is an observed fact that developments in economic thought tend to follow economic developments.“ What about the role of interests of the different agents/actors for economic developments and for developments in economic thought?
    2. What and who are behind the „powerful block … formed between business and rentier interest“ analysed by Kalecki in 1943? (P. 301)
    3. Why having „joined the European Common Market, Greece underwent a process of deindustrialisation“? (P. 302)
    4. When the Troika could have seen the results of „debt fighting“ according its „prescription“ in many developing countries and in former so called „socialist“ countries, why did it preschribe the same medicine to Greece? Even more: why did and do the EU institutions continue acting so while seeing the destructing consequences of their memorandums? Why do EU institutions destroy a EU member?

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