Comparison between the Greek Crisis of 2010 with the Argentinean crisis of 2001 - Dissertation Example

.…………………17 Chapter 4 Conclusions…………………………………………………………..………………………..23 Chapter 5 Reflective Report……………………………………………………..………………………..25 Bibliography……………………………………………………………………………………………….28 ABSTRACT This paper attempts to study the Greek Financial Crisis of 2009 and the Argentinean Crisis of 2001 in a comparative framework.

The idea is to deduce a policy remedy for Greece to recover from the recession. The primary issues addressed in this paper comprise the state of the economies of the two countries at the time of recession, the sovereign bond default and its causes. The research tries to compare the policy situations of the two countries to evaluate the effectiveness of the Argentinean policy measures to fight the Greek Crisis. In this situation the paper concludes that though there are similarities in the two situations and issues of concern, but they are not identical.

The magnitude of the Greek crisis is much more and consequences much graver due to the ongoing crisis in the global financial markets. Hence the Greek government needs to tread a more unconventional path than Argentina. The government has to depend on the foreign assistance to resurrect itself in the absence of a healthy global financial market. LIST OF ABBREVIATIONS IMF International Monetary Fund EU European Union ECB European Central Bank ACB Argentinean Currency Board EC European Commission UNECE United Nations Economic Commission for Europe 1.. In this paper we studied the emergence of the Greek Crisis in Europe at the backdrop of the global crisis.

We delved into the causes of the crisis and compared it with similar experience of recession in the past in other parts of the world. In this context we took a particular interest in the Argentinean Crisis of 2001 because of the conventional policies adopted by the country in fighting their crisis and the success they achieved in reaching their goals. Our primary interest in this paper was if the same model to tackle a recession could be applied for the case of Greek recession. In this scenario we tried to evaluate the situation of the two economies and considered all the channels Greece can assume.

We also considered the consequences of the crisis and its impact on the partner economies as well as the global financial situation. That helped us to judge the severity of the crisis and hence the interests of the national and international agencies to help Greece. Our method of analysis has been mostly a comparative study of the Greek crisis with the Argentinean crisis and an advantage and disadvantages of the solutions Greek can adopt. In comparison to the Argentinean crisis we noted that both the countries share some similarity in leaning on credit for loan servicing as well as personal consumption.

There was also a degenerated trade system owing to overvaluation of currency and wage price rigidity in both the countries.