Journal of Economics and Development Studies

Debt, Austerity or Fiscal Trap: Lessons from the Greek Case
Titos Ritsatos

Abstract
Greece has experienced an unforeseen reversal of fortune during the last five years. Since 2009, Greek sovereign debt has mounted high enough to be considered nonserviceable. Using recent experience from the Greek sovereign debt crisis, an expost evaluation of adopted policy effectiveness is pursued. Greece, lacking institutional depth protecting its own interests, was unable to deploy the appropriate strategy and preserve interests with concrete tactics at critical points. The result is an effective debt trap in which the effort to escape through austerity has only reinforced the enclave.

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