<P>ecent headlines highlight the inextricable and complex links among global economies—from the stock market meltdown in China to Greeces long-running debt crisis. We live and work in an ever-shifting global economy, and SMU Cox professors seek to educate students about it. To be an effective business leader, you must understand the global economy, says Mike Davis, SMU Cox senior lecturer of strategy and economics. These days, Greece is far more newsworthy for a series of billion-dollar bailouts, anxiety about default and possible expulsion from the Eurozone than for its ancient culture and beautiful islands. So how did Greece end up in a financial abyss, facing the largest sovereign debt default in history? In what follows, Davis sheds some light on the Eurozone, Greeces predicament and the future of the euro. The EU – Unity Among Former Foes Established in 1957, the European Economic Community (EEC) sought to unify European countries after the carnage of World War II. Leaders believed that a peaceful collection of countries with shared economic and political goals would avoid bloody wars like those that plagued the continent years earlier. Renamed the European Union in 1992, the EU consists of 28 countries today. Of those, 19 use the euro as their common currency, thus forming the Eurozone. Greece joined the EU in 1981 and relinquished its drachma in favor of the euro in 2002. The Big Fat Greek Debt Crisis With the arrival of the euro, Greece found it could borrow more money abroad at low interest rates. The country used the foreign capital to expand public spending. Greek citizens, among the EUs poorest, received lavish pensions, which often paid 96 percent of pre-retirement salaries. Not surprisingly, only 43 percent of Greeks aged 55-64 worked (vs. 62 percent of Americans)—not the best recipe for economic growth. When the global ?nancial crisis hit in 2009, lenders grew wary of heavily indebted Greece, and the good times were over. The country faced declining GDP, rising government de?cits and downgraded credit ratings. By 2015, Greeces debt equaled 177 percent of GDP, while unemployment surpassed 25 percent (among youths, it exceeded 60 percent). The country was kept a?oat, avoiding bankruptcy and perhaps exile from the Eurozone, by loans from the rest of the EU, which demanded economic reforms and CRISIS: THE A Modern Greek Tragedy by Lynda Oliver R 30</p> <UL><LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/1/1/">Front-Cover</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/2/2/">Inside-Front-Cover</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/3/3/">Page-1</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/4/4/">Page-2</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/5/5/">Page-3</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/6/6/">Page-4</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/7/7/">Page-5</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/8/8/">Page-6</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/9/9/">Page-7</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/10/10/">Page-8</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/11/11/">Page-9</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/12/12/">Page-10</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/13/13/">Page-11</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/14/14/">Page-12</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/15/15/">Page-13</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/16/16/">Page-14</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/17/17/">Page-15</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/18/18/">Page-16</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/19/19/">Page-17</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/20/20/">Page-18</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/21/21/">Page-19</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/22/22/">Page-20</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/23/23/">Page-21</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/24/24/">Page-22</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/25/25/">Page-23</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/26/26/">Page-24</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/27/27/">Page-25</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/28/28/">Page-26</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/29/29/">Page-27</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/30/30/">Page-28</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/31/31/">Page-29</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/32/32/">Page-30</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/33/33/">Page-31</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/34/34/">Page-32</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/35/35/">Page-33</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/36/36/">Page-34</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/37/37/">Page-35</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/38/38/">Page-36</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/39/39/">Page-37</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/40/40/">Page-38</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/41/41/">Page-39</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/42/42/">Page-40</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/43/43/">Page-41</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/44/44/">Page-42</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/45/45/">Page-43</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/46/46/">Page-44</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/47/47/">Page-45</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/48/48/">Page-46</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/49/49/">Page-47</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/50/50/">Page-48</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/51/51/">Page-49</a></LI> <LI><a href="http://www.mzines.net/publication/1089/qaeivcdmc/52/52/">Back-Cover</a></LI> <LI><a href="http://www.mzines.net/publications/1089/x/sitemap.xml" target="_blank">site map</a></LI> </UL>

 

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