A ParaPundit post from a few months ago: Greek Economy Shrinks 19 Quarters In A Row So Far. The Greeks have now reached an even worse milestone: 20 quarters (5 years) going down and still counting.
The 24% contraction since 2008 is similar to the US Great Depression contraction of 27%. So the Greeks will probably surpass the worst US economic contraction some time in 2014 or 2015.
You might think that central bankers and economists know how to avoid economic contractions that severe. But Greece gave up having its own central bank when it joined the Euro zone. The entry into the Euro zone also emboldened northern European banks to irresponsibly loan the Greek government far too much money. The Euro enabled a double whammy: bigger bubble and less control of the aftermath.
|Share |||By Randall Parker at 2013 August 17 09:25 PM|