Modern Greek Literature and Culture
Vassilis Monastiriotis, London School of Economics

Re-reading the Greek Crisis: Policy Errors and Domestic Deficiencies

Abstract

The Eurozone crisis has sparked a large literature offering a range of diagnoses and explanations for the origins of it – from ones that identify problems with the overall architecture of the Eurozone (e.g., Incomplete Union), to ones that focus on the ideological bias and policy mistakes of international financing institutions (e.g., the miscalculation of the fiscal multiplier), ones that highlight more the role of specific actors (e.g., political dynamics within the Eurogroup) and others that look more at domestic factors and policy constraints (e.g., institutional capacities in Greece; electoral preferences in Germany). This presentation will provide a critical discussion and assessment of dominant explanations in the literature and propose a unifying analytical framework under which to conceptualize and understand the Greek and Eurozone crisis. It will identify three critical pillars of the crisis – policy context, policy design and policy delivery – and discuss how external policy errors and domestic policy failures combined to create a self-reinforcing dynamic which came to threaten Greece’s long-term Europeanization project and the viability of the Eurozone project at large.