American Economic Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
The Political Economy of the Greek Debt Crisis: A Tale of Two Bailouts
American Economic Journal: Macroeconomics
vol. 6,
no. 4, October 2014
(pp. 291–323)
Abstract
We review the events that led to the May 2010 and July 2011 bailout agreements. We interpret the bailouts as outcomes of political-economy equilibria. We argue that these equilibria were likely not on the Pareto frontier, and sketch political-economy arguments for why collective policymaking in the Euro area may lead to suboptimal outcomes.Citation
Ardagna, Silvia, and Francesco Caselli. 2014. "The Political Economy of the Greek Debt Crisis: A Tale of Two Bailouts." American Economic Journal: Macroeconomics 6 (4): 291–323. DOI: 10.1257/mac.6.4.291Additional Materials
JEL Classification
- E58 Central Banks and Their Policies
- E62 Fiscal Policy
- F34 International Lending and Debt Problems
- G01 Financial Crises
- H61 National Budget; Budget Systems
- H63 National Debt; Debt Management; Sovereign Debt