Strategic Analysis | December 2014
Is Greece Heading For a Recovery?
With the anti-austerity Syriza party continuing to lead in polls ahead of Greece’s election on January 25, what is the outlook for restoring growth and increasing employment following six years of deep recession?
Despite some timid signs of recovery, notably in the tourism sector, recent short-term indicators still show a decline for 2014. Our analysis shows that the speed of a market-driven recovery would be insufficient to address the urgent problems of poverty and unemployment. And the protracted austerity required to service Greece’s sovereign debt would merely ensure the continuation of a national crisis, with spillover effects to the rest of the eurozone—especially now, when the region is vulnerable to another recession and a prolonged period of Japanese-style price deflation.
Employer of Last Resort (ELR) policy Greece Greek economic crisis Job creation Levy Institute Model for Greece (LIMG) Marshall Plan New Deal Public investment Public service jobs Stock-flow consistent (SFC) modeling