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The State and the Economy of Modern GreeceKey Drivers from 1821 to the Present

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  • George Alogoskoufis

Abstract

This paper reviews, analyses and interprets the history of the state and the economy of modern Greece, from the eve of the war for independence in 1821 to the present. It identifies three major historical cycles, the cycle of state and nation building, 1821-1898, the cycle of national expansion and consolidation, 1899-1949, and the post-1950 cycle of economic and social development. During these two hundred years, Greece managed to almost triple its national territory, to increase its population by almost 15 times and to increase its real GDP per capita by another 15 times. Yet, Greece was also characterized by long periods of low economic growth and political and economic instability, including national ‘schisms’ and civil wars, high inflation, international over-indebtedness, and sovereign debt crises and defaults. The analysis focuses on the key drivers of these developments, exploring the dynamic interactions of ideas and values, economic and social conditions, political and economic institutions, geopolitical circumstances and international economic and financial regimes.

Suggested Citation

  • George Alogoskoufis, 2023. "The State and the Economy of Modern GreeceKey Drivers from 1821 to the Present," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 184, Hellenic Observatory, LSE.
    • Handle: RePEc:hel:greese:184
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    File URL: https://www.lse.ac.uk/Hellenic-Observatory/Assets/Documents/Publications/GreeSE-Papers/GreeSE-No184.pdf
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    References listed on IDEAS

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    1. George Alogoskoufis, 2019. "Greece and the Euro: A Mundellian Tragedy," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 136, Hellenic Observatory, LSE.
    2. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    3. George Alogoskoufis & Dong-Ho Lee & Apostolis Philippopoulos, 1998. "Exchange-Rate Regimes, Political Parties and the Inflation-Unemployment Tradeoff: Evidence from Greece," Open Economies Review, Springer, vol. 9(1), pages 39-51, January.
    4. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422, September.
    5. Barro, Robert J, 1979. "On the Determination of the Public Debt," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 940-971, October.
    6. Carmen M. Reinhart & Christoph Trebesch, 2015. "The Pitfalls of External Dependence: Greece, 1829–2015," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 46(2 (Fall)), pages 307-328.
    7. Alogoskoufis, George S. & Philippopoulos, Apostolis, 1992. "Inflationary expectations, political parties and the exchange rate regime: Greece 1958-1989," European Journal of Political Economy, Elsevier, vol. 8(3), pages 375-399, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Modern Greece; economic history; institutions; economic growth; fiscal policy; monetary policy;
    All these keywords.

    JEL classification:

    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative

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