Effects of Global Financial Crisis on Greece Economy

Abstract

The cause of global financial crisis in the world in 2007 - 2008 is the mortgage crisis in USA in August, 2007. The crisis caused an immense instability in markets and gradually became global. Effects of this crisis upon some countries were deeper and more destroying. Greece is one of these countries. It is seen that Greece has an economic structure consisting of high debt level, high budget deficit, low competitive power and unstable political structure. At the end of 2009, the political and economic crisis in Greece, which began as a debt crisis, turned out to be a Euro Zone crisis. In this context, this study seeks to examine effects of incorrect economic and political decisions, and dishonest statements about their results on the progress of the crisis and on Greece economy and to propose solutions. (C) 2015 The Authors. Published by Elsevier B.V.