Monastiriotis (2011) argues Greece was exposed to an unprecedented financial crisis because:
- It had chronic budgetary control problems, including an inability to control expenditure and low levels of tax revenue (typically 7% lower than the OECD average)
- It was locked into the EMU, which set unrealistically low interest rates and prevented currency devaluation
- Budget monitoring and reporting of the problems lacked precision and credibility
- Immediate Fiscal Austerity --> now is the time to slash spending, despite the fact that the world’s major economies remain deeply depressed
'Austerity … has become a keyword for these ostensibly post-crisis times' (Peck 2012: 626)
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