Eco+Nomics

It has been a while since the public discourse of the "success story" begun, generating discussions over whether there is some short of success or not and, if yes, to what extent. Anyway, I am with those who strongly believe that there is no "success story" at all to talk about . However, there is something that I have failed to pay attention to: the expectations and the way they make the economy - and the world - move. Expectations play a very important role in any economy and, although they do not constitute the main nor the major factor of economic (both financial and non) incidents, they can make scenarios materialize that otherwise would not; mostly through a self-fulfilling prophecy.  What am I trying to suggest? That the only reason why our prime minister might argue for a success (story) is to create the perception that the ongoing reforms have begun bearing fruit and subsequently to form the expectation that economic environment is going to improve. Appa...

There is something I need to admit... I am sick of the so called "success story" and the naive- false and deceitful, if you are as malicious as I am- declarations of the opposition. Here are the facts: During 2008, Greece produced goods and services of 240 bn euros. During the period April 2012- March 2013 GDP in current prices was 190 bn euros ( EL.STAT .). By the end of March 2013 the debt of the Central Government was 309 bn euros ( Ministry of Finance ), i.e. 161% of Greek GDP.  Additional measures need to be taken in order to make sure that the Central Government debt will be less than 110% of GDP by 2022. The most auspicious scenario is that the current taxation will remain unchanged for at least until 2015 with the hope that recession will deescalate. Anyway, I do not really believe that there is any more space left for heavier taxation. On the other hand, we are still missing the big picture: while oscillation between anemic growth and periods of recessions ten...

The dream of a united Europe dates back in 1951 in the form of the "European Coal and Steel Community" (ECSC). 41 years later, on February 7, the 12 members of the EU signed the Maasticht Treaty probably a treaty with the most lethal omissions, lethal for the future of EU. During all the years following the Maastricht Treaty even more mistakes were made and are currently being made and more facts were neglected. Currently, we are playing down the spill-overs of austerity policies while we are concentrated in maintaining a "lower than, but close to, 2% inflation in the mid-term", like a ship being trapped in a port without the crew knowing that they have actually been trapped... Decisions were made as if the only economic variables that could hamper economic growth and social prosperity are debt and inflation. Given that false, sometimes rather naive, perception and regardless the 5 year long inert growth of Euro area we are still focusing on "sound governmen...