The political economy of the Greek debt crisis: a tale of two bailouts

Ardagna, Silvia; and Caselli, FrancescoORCID logo (2012) The political economy of the Greek debt crisis: a tale of two bailouts. Technical Report. London School of Economics and Political Science. Centre for Economic Performance, London, UK.
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We review the events that led to the May 2010 and July 2011 bailout agreements. We interpret the bailouts as outcomes of political-economy equilibria. We argue that the second bailout was not on the Pareto frontier and sketch political-economy arguments for why this may be so.

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