Zeus’ Fault: The Greece crisis

Manisha Georgina reports from The Group Of 20 Nations
Though considered one of the top fifty largest economies in the worlds the Greece economy has faced trouble more than one in the recent times. The major recession faced by this particular economy was in the year 2008 which was after years of good economic growth. Greece was accused of covering up the huge budget deficit in the 2009 year when the budget plans were revised. The Bank of Greece is the national central bank of Greece, whose main objective was to maintain price stability and over-look the private banks, insurance companies and also is a treasurer of sorts. It’s also a part of the European System of Central Banks.

In the wake of the 1950’s till 1990’s Greece experienced something known as the Greece Economic miracle. Its growth rates were the highest in the 1950’s and 1960’s when there was a huge growth in

industrial productions as well. But then in 2007 Greece face hard times and the recession is considered as the worst recession after the one in 1930, the Great depression. This led to a liquidity crisis, which means that they couldn’t convert any sort of asset into cash that easily and a huge amount of unemployment prevailed. When the status of Greece reduced to junk bond the private markets couldn’t fund it anymore and hence the Eurozone countries and the IMF decided on 110 billion Euro bailout loan. The second bailout loan was also agreed upon with certain conditions such as maintain the austerity package, which was an amount of 130 Billion Euros.

The consequences of this were far, the whole of the Eurozone countries felt that these could result in the investors losing their confidence in the market. And despite the crisis majority of the people still think that Greece shouldn’t leave the Eurozone. The aftermath analysis of this was put up by the IMF, which said that “risk of poverty and social exclusion “wasn’t important for the first two years.