Chart of the day

Posted: 3 July 2015 in Uncategorized
Tags: , , ,

Greekovery

source

As Joseph Stiglitz has observed,

the economics behind the program that the “troika” (the European Commission, the European Central Bank, and the International Monetary Fund) foisted on Greece five years ago has been abysmal, resulting in a 25% decline in the country’s GDP. I can think of no depression, ever, that has been so deliberate and had such catastrophic consequences

Comments
  1. BRF says:

    this has been a case of eating one of their own, depicting the utter failure of the E.U. experiment. It would be as if all the states in the union ganged up on a few of the poorer states that can’t pull their weight with their debt load and were forced to auction off enterprise to the other states to meet their share of the debt load. Of course there shouldn’t be a debt load to begin with but that is another horse entirely.

    • Blissex says:

      The graph above is interesting but grossly misleading, and I think intentionally so, as if it were meant to show that having a certain level of GDP as that in 2008 were a natural birthright of Greece.

      It seems intentionally misleading because it starts in 2008, and does not compare GDP with imports. These two graphs are far more informative. This is GDP since 1995, with 2005=100

      https://rwer.wordpress.com/2015/07/01/gdp-in-emerging-europe-worse-than-you-think/

      It shows that greek GDP is today at the same level as it was in 2000, after about 20 years of EU membership, and as Greece was about to adopt the Euro.

      The other graph shows that for the most part Greek GDP grew in 2001-2008 as the result of a monstrous import “boom” (which was financed almost entirely with debt) which continued at a very high level for the first 3 years of “austerity”, 2008-2011:

      https://rwer.wordpress.com/2015/07/03/lose-lose-in-greece/

  2. […] via David Ruccio, via Frances Coppola, originally due to Robin Wigglesworth I […]

  3. […] Joseph Stiglitz observed, “I can think of no depression, ever, that has been so deliberate and had such […]

  4. […] Joseph Stiglitz observed, “I can think of no depression, ever, that has been so deliberate and had such […]

  5. […] via David Ruccio, via Frances Coppola, originally due to Robin Wigglesworth I […]

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