How Did The Financial Crisis Affect The Greek Economy
The financial crisis that has impacted Greece has taken a heavy affect on the country and the whole of Europe. This Greek crisis also known as the Greek depression started in 2001 when Greece adopted the Euro and became part of the euro zone, which then give Greece easy access to millions of loans at a low interest rate. The Greek government then used the back loans to finance projects such as infrastructures, pensioners and technologies to modernize their country and compete with their new competitors in the Euro zone. But Greece government was guilty of over spending on projects that were not necessary that would bring about inflation. Greece government were thinking that all this debt that they were accumulating would be repaid over the years to come but unfortunately this wasn’t the case, instead Greece would find that they would be in greater debt year after year. Also the Greek government was guilty of understating the books by providing false or incorrect data to European regulators for a number of years. As a consequence high inflation pushed tourist
…show more content…
This can happen through the reduction of European consumers who would come to the Caribbean as tourist and occupy the Caribbean as a vacation location. As a result a reduction in tourist to any Caribbean island will lead to reduction in the countries income because of the heavily reliance on tourism. This reduction would be as a result of the raise in the unemployment rate. Another factor that could be affected is the devaluation of the euro and could add pressure to the valuation of the currencies, and making it harder in using interest rates as a tool for inflation control. Finally European countries which help in the process of developing countries in the Caribbean would be reduced. Because of the high debt that the countries would be facing it would be hard to
This can happen through the reduction of European consumers who would come to the Caribbean as tourist and occupy the Caribbean as a vacation location. As a result a reduction in tourist to any Caribbean island will lead to reduction in the countries income because of the heavily reliance on tourism. This reduction would be as a result of the raise in the unemployment rate. Another factor that could be affected is the devaluation of the euro and could add pressure to the valuation of the currencies, and making it harder in using interest rates as a tool for inflation control. Finally European countries which help in the process of developing countries in the Caribbean would be reduced. Because of the high debt that the countries would be facing it would be hard to