Groundhog Day in Greece

Abstract:

This paper argues that the resurgence of the Greek crisis is not surprising and can be explained both with a macroeconomic approach – lack of debt relief – and a microeconomic approach – lack of structural reforms. The lack of progress along both dimensions can be explained both by political economy arguments within Greece and the eurozone as well as deeper institutional deficiencies in Greece and the lack of a proper governance framework within the eurozone.