Unit:
Deparment of Political Science & Public AdministrationLibrary of the Faculties of Political Science and Public Administration, Communication and Mass Media Studies, Turkish and Modern Asian Studies, Sociology
Author:
Soufleris Doukas-Nikolaos
Supervisors info:
Δημήτριος Χρ. Κατσίκας, Επίκουρος Καθηγητής
Τμήμα Πολιτικής Επιστήμης και Δημόσιας Διοίκησης
Εθνικό και Καποδιστριακό Πανεπιστήμιο Αθηνών
Original Title:
Το ξέσπασμα της Ελληνικής Κρίσης Χρέους και ο δρόμος προς το 1ο Μνημόνιο: αυτοεκπληρούμενη προφητεία;
Translated title:
The Greek Debt Crisis breakout and the road to the 1st rescue package: self-fulfilling prophecy?
Summary:
This paper aims to examine the application of the theory of self-fulfilling crises in the case of the Greek sovereign debt crisis escalation after the national elections of 2009, leading to the 1st bailout agreement in May 2010. Despite joining the EMU, the failure to address sufficiently long-term economic problems such as its low competitiveness and growing fiscal imbalances, pushed the Greek economy into a zone of vulnerability. Under these circumstances, we point out the role of narratives that influenced the formation of investors’ expectations and changed the way Greece was treated by international financial markets, as illustrated by the rapid deterioration of Greek sovereign bond spreads in the first months of 2010. Two of the most important narratives of this kind relate to the weak policy response of consecutive Greek governments and second, to the reluctance of the EMU institutions and member states to provide guarantees of support to the Greek economy and the consequent delay in their reaction to the escalating crisis.
Main subject category:
Social, Political and Economic sciences
Keywords:
theory of self-fulfilling crises, Greek debt crisis, 1st rescue package, narratives
