Article

 

THE GREEK ECONOMIC CRISIS: INTRODUCTION (p.13-20)

by

Stavros MAVROUDEAS, University of Macedonia

George ECONOMAKIS, University of Patras

 

 

IS THE CURRENT CRISIS OF GREEK CAPITALISM A CRISIS OF A FINANCIALIZED ECONOMY? (p.21-42)

by

Demophanes PAPADATOS, NATIONAL AND KAPODISTRIAN UNIVERSITY OF ATHENS

Keywords : Bill of exchange, Shadow-banking, Repurchase agreement, Securitization, Fictitious capital, Marxism

JEL classification : B14, B24, B51, G21, G24, P16

Abstract

The article proposes an explanation of the current crisis of Greek capitalism from the point of view of Marx’s theory of Money and Finance. In this context, the concept of fictitious capital plays a prominent role, in defining and explaining the process of proliferation of finance in contemporary capitalism also known as financialisation. From this perspective the evolution of the Greek financial system relative to the evolution of capitalist accumulation in Greece, is examined from 1973 till the EU-ECB-IMF economic adjustment program of 2010. The theoretical analysis and the empirical examination of this paper rejects the argument that the current Greek crisis is a financialisation crisis.

 

 

IMPERIALIST EXPLOITATION AND THE GREEK CRISIS (p.43-64)

by

Stavros MAVROUDEAS, UNIVERSITY OF MACEDONIA

Stergios SERETIS , ARISTOTLE UNIVERSITY OF THESSALONIKI

Keywords : Imperialism, Greece, Transfers of value, Unequal exchange

JEL classification : B51, E11, F45, F54

Abstract

In previous works (e.g. Mavroudeas & Paitarides (2015b)) it has been argued that the post-2007 long duration crisis of Greek capitalism has two intertwined causes. The internal cause stems from the falling profitability trend caused by the increase of the organic composition of capital. The external cause stems from the economic imperialist exploitation of Greek capitalism by the more developed and hegemonic capitalisms of the EU. Economic imperialist exploitation implies the transfer of value from the exploited economy to the exploiting through broad unequal exchange (that is unequal exchange caused by the difference in the organic compositions of capital between the two economies). Mavroudeas & Paitaridis (2015b) offered an indirect proof of this exploitation mechanism by comparing Greece’s terms of trade with those of two similar EU economies (one participating also in the EMU and the other participating only in the Common Market). This paper supplements that proof by measuring directly the value transfers between Greece and two other EU economies.

 

 

THE ROLE OF TECHNOLOGY, DISTRIBUTION AND DEMAND IN THE DEVELOPMENT AND CRISIS OF THE POSTWAR GREEK ECONOMY (p.65-90)

by

Thanasis MANIATIS, NATIONAL AND KAPODISTRIAN UNIVERSITY OF ATHENS

Costas PASSAS, NATIONAL AND KAPODISTRIAN UNIVERSITY OF ATHENS

Keywords : Profitability, Technical change, Effective demand, Income distribution, Greek economy

JEL classification : B51, E11

Abstract

In this paper we examine the behavior of the net rate of profit and its constituents in the Greek economy over the 1960-2013 period, and using structural break tests we distinguish the postwar era into four medium run and five short run periods. Then, decomposing the rate of profit into a technology, a distribution and an effective demand component we find that in all three time horizons technological change (rising capitalization of production) appears to be the most important driver of profitability, with distribution also being important during the stagflation crisis of the 1970s. The role of aggregate demand and capacity utilization is limited except for the period of the current crisis when the state and capital in an effort to bring about capital destruction and labor capitulation have adopted drastically restrictive policies which have affected seriously profitability in a negative way.

 

 

THE MARXIAN “LAW” AND THE CURRENT GREEK ECONOMIC CRISIS (p.91-117)

by

George ECONOMAKIS, UNIVERSITY OF PATRAS

George ANDROULAKIS , UNIVERSITY OF PATRAS

Maria MARKAKI , TECHNOLOGICAL EDUCATIONAL INSTITUTE OF CRETE

Keywords : Greek economic crisis, Marxian theory of crisis, “Unevenness”, Underconsumption

JEL classification : B14, B51, E11

Abstract

From a “classical” Marxist perspective, the recent Greek economic crisis is understood as the direct effect of Marxian “law” of the tendency of the rate of profit to fall due to the rising organic composition of capital. The validity of this interpretation is challenged in the following analysis. The central thesis of this paper is that the Greek economic crisis is a crisis of “unevenness” and imperialist exploitation, within the the EU-EMU frame, which has appeared as an underconsumption crisis in the conjuncture of global economic crisis. However, such a kind of crisis implies an indirect manifestation of Marx’s “law”.

 

 

USING THE SOCIAL ACCOUNTING MATRIX TO UNDERSTAND THE GREEK ECONOMIC CRISIS (p.119-133)

by

Charalampos ECONOMIDIS, PANTEION UNIVERSITY OF SOCIAL AND POLITICAL SCIENCES

Apostolos ECONOMIDES, PANTEION UNIVERSITY OF SOCIAL AND POLITICAL SCIENCES

Keywords : Social Accounting Matrix, Input-output Tables and analysis, Greek economic crisis

JEL classification : D57, E16

Abstract

The aim of this paper is to compile a Social Accounting Matrix for 2010, a decisive year for the period of crisis of the Greek economy. This SAM can facilitate our understanding of the crisis. More specifically, the SAM shows the changes in the various types of income of institutional agents. From the data contained in the SAM, it emerges that while National income and Disposable income have both declined, this decline is not evenly distributed across each institutional agent. In particular, for the period in question, although the income of Households and General Government shows a decrease, the income of Non-financial and Financial institutions marks an increase.

 

 

THE FOREIGN-TRADE LEAKAGES IN THE GREEK ECONOMY: EVIDENCE FROM THE SUPPLY AND USE TABLE FOR THE YEAR 2010 (p.135-155)

by

Theodore MARIOLIS , PANTEION UNIVERSITY OF SOCIAL AND POLITICAL SCIENCES

Keywords : Foreign-trade leakages, Greek economy, Industrial policy, Key-commodities, Management of effective demand

JEL classification : C67, D57, E61, F14, O25

Abstract

Using input-output table data and constructing a system of relevant indices, this paper sheds some new light on the foreign-trade “leakages” in the Greek economy for the “pre-adjustment” year of 2010. The findings suggest that, due to profound intersectoral imbalances, (i) a well-targeted effective demand management policy could be mainly based on the service and primary production sectors; while (ii) industrial policy would be necessary and could primarily focus on nine industrial commodities, which are identified as the main leakages in the Greek economy.

 

 

DIVISION OF LABOUR, PRODUCTIVITY, AND COMPETITIVENESS OF THE GREEK TRADABLE SECTOR (p.157-184)

by

Dimitris PAITARIDIS, INSTITUTE OF LABOUR (INE GSEE)

Keywords : Productivity, Division of Labour, Tradable Sector, Competitiveness, Profit Margin

JEL classification : D24, E24, J31, O24

Abstract

This article compares the evolution of productivity for the domestic tradable sector vis-à-vis the Eurozone countries and its impact on cost competitiveness, during the period 2000-2014. In particular, we track for possible changes into the domestic division of labour that might have favoured low-productivity industries exerting a negative impact on the cost/price competitiveness. However we must point out that the cost advantage does not depend only on the labour cost, but it is also the profit margin that determines the final price of goods and services. For that reason we also compare the evolution of profit margin between the domestic and the Eurozone tradable sector in order to ascertain if there are any cost disadvantages due to excessive profitability of Greek enterprises. Our results indicate that in the case of the tradable sector, the greatest part of the productivity divergence is attributed to differences in intra-industry productivities and not to a less favoured division of labour. These differences in intra-industry productivity are the main cause for the modest decrease in unit labour cost despite the major decline in the nominal unit wage that was imposed by the austerity policies. Finally, the profit margin of the tradable sector exhibits an increase during the crisis period which possibly undermines cost competitiveness.

 

 

UNPAID OVERTIME AS AN INDEX OF EMPLOYERS’ RELATIVE POWER (p.185-204)

by

Alexis IOANNIDES , DEMOCRITUS UNIVERSITY OF THRACE

Stavros MAVROUDEAS, UNIVERSITY OF MACEDONIA

Keywords : Unpaid overtime, Overtime, Part-time work, Greece, The Netherlands

JEL classification : J22

Abstract

Unpaid overtime is a currently increasing phenomenon. It signifies a tendency for increasing work-time in developed economies that takes place contrary to the rights and wishes of the workers; at least at a first glance. The increasing significance of unpaid overtime creates also serious analytical problems for mainstream economic theories given that they deny the possibility of it being involuntary. A study of the determinants of unpaid overtime clarifies the causes of its occurrence. This study highlights elements that reinforce the idea that unpaid overtime is the result of pressure from the part of employers, particularly in times of economic crisis and high unemployment.

 

 

THE GREEK DEPRESSION: POVERTY OUTCOMES AND WELFARE RESPONSES (p.205-222)

by

Stefanos PAPANASTASIOU, DEMOCRITUS UNIVERSITY OF THRACE

Christos PAPATHEODOROU, PANTEION UNIVERSITY OF SOCIAL AND POLITICAL SCIENCES

Keywords : Poverty, Intergenerational mobility, Social protection, Economic crisis, Austerity, Greece

JEL classification : I31, I32, I38

Abstract

This paper investigates poverty outcomes and social protection developments in Greece over the critical period 2008-2015. The empirical findings reveal a dramatic deterioration of the living and welfare standards of many Greeks, whereas social protection is under drastic reductions as results of austerity policies that are dictated by the Memoranda. Employing a logit model, it is found that poverty reproduction is a pressing matter that portrays contemporary Greece and deserves consideration by researchers and policymakers. In consequence, Greece is boxed in fiscal discipline when public and social spending is most needed to bolster social cohesion and boost economic growth.

 

 

SOCIAL AND SOLIDARITY ECONOMY AND THE CRISIS: CHALLENGES FROM THE PUBLIC POLICY PERSPECTIVE (p.223-243)

by

Sofia ADAM, DEMOCRITUS UNIVERSITY OF THRACE

Keywords : Social solidarity economy, Public policies, Crisis, Greece

JEL classification : B5, P0

Abstract

Social and Solidarity Economy is adopted in the public policy agenda from a variety of actors including the European Commission, the Greek government but also grass-roots movements in crisis-ridden Greece. This paper unfolds diverse and often competing conceptualizations of Social and Solidarity Economy through their manifestations in concrete public policy agendas with particular emphasis on the recent introduction of the new legal framework in Greece (Law 4430/2016). In this way, the paper links academic and policy discourses and demonstrates that academic battles are of importance for public policy formulations. Our particular emphasis is on the disabling limits or the enabling potential of public policies for SSE initiatives.

 

 

BOOK REVIEW. Stavros Mavroudeas’ (ed.), Greek Capitalism in Crisis: Marxist Analyses, London, Taylor and Francis, 2014, 236 p., ISBN: 978-0-415-74492-8 (p.245-254)

by

Thanasis ARGYRIOU, NATIONAL AND KAPODISTRIAN UNIVERSITY OF ATHENS