The text of this lecture reviews the origins and nature of the Greek crisis. While the loss of competitiveness that the country has experienced ever since accession to the monetary union is a central force in its current condition, there have been other also troublesome developments, such as slowdown in productivity growth, overconsumption, the lack of productive investments, a continuing tendency for the public sector to assume the debt of insolvent public corporations and inability of the country to modernize while experiencing increasing inequality and corruption. However, there are also issues with the design of the Eurozone itself, which are contributing to Greece’s having become a particularly vulnerable member of the Eurozone. The Greek experience is discerned in the experiences of other Eurozone countries.
A full set of slides is here: http://greekeconomistsforreform.com/wp-content/uploads/Ioannides-Presentation-Fletcher-Oct-28-11.pdf