Economic Policies in Greece during 1990-1993: An Assessment

An analysis of the conservative economic policy of the period 1990-1993 in Greece shows that its results were negative. In order to end the economic crisis in Greece, a new policy is needed that will emphasize economic growth, pay attention to public investment in the infrastructure in order to generate an increase of productivity in the private sector, raise the level of business activity, and reduce the risks faced by individual firms. For the crucial field of exchange rate policy, what is needed is a "crawling peg" policy according to market signals.