Contemporary Southeastern Europe 2026, 13 (1)

The Path Not Taken: An Alternative Perspective to the Greek Financial Crisis

This paper explores the Greek Financial Crisis (GFC) by examining the neoclassical policies of the Economic Adjustment Programs (EAPs) imposed by Troika (European Commission, European Central Bank, and the International Monetary Fund) and proposing a Keynesian alternative. The neoclassical approach, which emphasized expansionary austerity through fiscal consolidation, internal devaluation, market liberalization, and privatization, was intended to stabilize the Greek economy but led to economic contraction and rising unemployment. In contrast, the paper presents a Keynesian framework focused on demand management, public investment, and fiscal expansion to counter the recessionary effects of the crisis. It integrates key political economy components, including economic theory, political framework, ideological structure, institutional structure, and initial conditions. The Keynesian approach emphasizes coordinated wage bargaining, stimulating aggregate demand, and fostering full employment. By accounting for Greece’s specific economic conditions, this alternative strategy offers a balanced recovery that promotes both economic stability and social cohesion, providing a pathway to sustainable growth within the European Monetary Union (EMU).
 
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John Marangos

John Marangos

John Marangos is a Professor of Comparative Economic Systems at the Department of Balkan, Slavic, and Oriental Studies at the University of Macedonia. The focal points of John’s research are the transition processes in Russia, Eastern Europe, the former Soviet Union, and Asia; international development; the Global Financial Crisis; and innovative methodologies for teaching economics. The publications or in the process of publication are 12 books 19 book chapters, 78 refereed journal articles. He was awarded the 2018 Clarence E. Ayres Scholar Award by AFEE for his contribution to Institutional Economics. Website: www.johnmarangos.eu.

Themis Anthrakidis

Themis Anthrakidis

Dr. Themis Anthrakidis is a Postdoctoral Research Fellow in Economics at the University of Macedonia, Thessaloniki, Greece. He received a PhD in Economics from the University of Macedonia, a Master’s degree in Economics from the University of Amsterdam, the Netherlands, a Bachelor’s degree in Economics from the University of Macedonia in Thessaloniki and a Bachelor’s degree in Laws from the Democritus University of Thrace, Greece. He has published several articles in refereed journals, book chapters, conference presentations and conference proceedings. His research interest is in Political Economy, Comparative Political Economy, Economic Theory and Policy, Economic and Financial Crises.

Keywords:
Greek Financial Crisis Keynesian Economics Neoclassical Economics Economic Adjustment Programs Troika

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