by Harris Dellas, George S. Tavlas
September 17, 2013
The entry of Greece into the Eurozone in 2001 was widely expected to mark a transformation in the country’s economic destiny. Then, beginning in 2009, everything changed as Greece became the center of a major financial crisis. Between the end of 2008 and mid-2012, the economy contracted by a cumulative 20 percent (and it continues to contract), and the unemployment rate jumped from less than 8 percent to about 25 percent. What happened? And why did it happen? What are the lessons that can be drawn from a comparison between the gold standard and the Eurozone?