The Greek debt crisis is back in the news. According to the Greek authorities, the country’s economy shrank by 0.4 per cent in the final quarter of 2016. “Experts” had expected it to grow by 0.4 per cent.
Despite a number of bailouts amounting to some 240 billion euros, and a host of supposed reforms (which I will address below), the Greek economy is refusing to grow. As a consequence, debt has ballooned to around 180 per cent of gross domestic product.
Jeroen Dijsselbloem, the head of the Eurogroup of finance ministers, has downplayed the disappointing data out of Athens, saying that …read more