STUDY OF DOUBLE DEFICIENCY IN THE ECONOMY OF GREECE IN 1980-2019
https://doi.org/10.24412/2225-8264-2021-2-53-59
Abstract
The article deals with the theoretical foundations of the double deficit hypothesis within the framework of the Keynesian school and the followers of Ricardo. The hypothesis of a double deficit in the Greek economy is put forward. First, the theoretical components of this concept are considered. The following are the macroeconomic indicators of Greece for the period from 1980 to 2019 for the purpose of their analysis. The indicators include the country's GDP growth, public debt, public spending, current account balance, and budget deficit. Trends and dependencies are constructed and illustrated on the basis of statistics; a correlation analysis was performed to determine the general and deficit dependencies. In order to improve the quality of the study and the reliability of its results, the correlation analysis divides the forty-year period into three parts, this is due to important events affecting the Greek economy: Greece's entry into the euro zone and the global financial crisis of 2008. The results of the analysis showed a strong link between the budget deficit and the current account deficit of Greece's balance of payments in the period from 2008 to 2019. After confirming the hypothesis, the reasons and explanations for the phenomenon of double deficits in the economy are given. The main reason is the global financial crisis, after which Greece was unable to restore the economy. Undermining the economy led to increased spending, which increased the budget deficit. To ensure the missing funds, the state attracted loans, thereby increasing the external debt. This has led to an increase in the current account deficit. Confirmation of the existence of twin deficits in the Greek economy paves the way for further expansion causes the dual-deficit model predictions of its development in the future, but also find solutions to problems at the economic level.
About the Authors
D S. Bugaeva
Dostoevsky Omsk State University
Russian Federation
Russian Federation
Darya S. Bugaeva
N. V. Puzina
Dostoevsky Omsk State University;
Siberian Institute of Business and Information Technology
Russian Federation
Russian Federation
Nataliya V. Puzina
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Review
For citations:
Bugaeva D.S., Puzina N.V. STUDY OF DOUBLE DEFICIENCY IN THE ECONOMY OF GREECE IN 1980-2019. Herald of Siberian Institute of Business and Information Technologies. 2021;10(2):53-59. (In Russ.) https://doi.org/10.24412/2225-8264-2021-2-53-59
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