Friday, June 27, 2014

Two Greek economic analysts Michael Mitsopoulos, economist at the Hellenic Federation of Enterprises, and Theodore Pelagidis, professor of economics at the University of Piraeus seek to explain the Greek financial crisis—from beginning to end, in their book Greece : From Exit to Recovery?, which was recently published by the Brookings Institution Press.

In part I, the authors explore the lead up to Greece’s adoption of the euro arguing that the ensuing challenges were foreseeable. In the second section Mitsopoulos and Pelagidis analyse discrete sectors of the economy, paying special attention to labor and finance—and the mistakes creditors made in focusing on reducing Greek incomes—rather than increasing competitiveness on non-labour costs.

In part III, the authors seek to understand why Greek companies spend relatively little on research and development and indicate that policy decisions largely determine R&D performance in the private sector. Finally, Mitsopoulos and Pelagidis bring to the fore of specific policy proposals to improve the situation.