Why has Greece not defaulted, yet? - A macroeconomic and historical institutionalist perspective on why Greece has not followed in Argentine footsteps and defaulted.

Lenny Matthew Afranie, Tina Rauff Hansen & Ida Dalgaard Steffensen

Studenteropgave: Semesterprojekt


This projects sets out to explore the reasons why Greece, in the light of the current sovereign debt crisis, has not done as Argentina did in 2001 and defaulted. It uses a historical institutionalist framework, drawing on path dependency and critical junctures in the analysis of 1. how the European Union (EU) imposes restrictions on Greece, and 2. how Greece's and Argentina's situations correspond and differ. The project concludes that the main difference lies in the restrictions imposed on Greece by the EU, implemented through the agreement of the Maastricht convergence criteria. These criteria include demands for price stability, exchange rate stabilisation, nominal long-term interest rates and low government debts and deficits. They essentially remove Greek control of fiscal and monetary policies and are part of the reason for the sovereign debt crisis. Although Greece has been given further loans to pay their debt, the possibility that they will default is still very present, as they are currently in a negative debt-spiral where interest rates on their loans exceeds income, leading to constant negative growth with a variety of negative effects.

UddannelserGlobal Studies, (Bachelor/kandidatuddannelse) Bachelor el. kandidat
Udgivelsesdato23 maj 2012
VejledereLaura Horn


  • Eurozone Crisis, Greece, Sovereign Debt Crisis, Default, Global Political Economy, Argentina, Historical Institutionalism, Path Dependency