Abstract

Even prior to the crisis, the Greek economy had been plagued by structural inefficiencies, which were responsible for the gradual decline of its economic performance. At the same time, the structural inefficiencies of both modern capitalism in general and the architecture of European Monetary Union in particular have worsened conditions for the country after the global financial meltdown of the 2007–2008 period. This chapter identifies major factors behind the build-up to the crisis that Greece has been facing, pointing to domestic inefficiencies and externally imposed rigidities. Their combination has led to an inability to escape the current death spiral.