Financial Crisis in Greece--Implications and Lessons Learned, Hearing Before the Committee on Foreign Relations, Subcommittee on Europe and Regional Security Cooperation, United States Senate, One Hundred Fourteenth Congress, First Session, July 29, 2015   [open pdf - 796KB]

This is a testimony compilation of the July 29, 2015 hearing "Financial Crisis in Greece--Implications and Lessons Learned" held before the Senate Committee on Foreign Relations. From the testimony of Dr. John B. Taylor: "The Greek economy has been performing terribly by any measure. The economy has shrunk, with real GDP [gross domestic product] falling by an average of -5% per year for the past five years, and over the longer term economic growth has been very low. Since Greece joined the European Union in 1981 real GDP growth has averaged only 0.9% per year and productivity growth (on a total factor basis) has averaged only 0.1% per year. Looking back in time, there are three key factors that have led to this situation, and all provide lessons for the United States: First, Greece's economic policies--regulatory, rule of law, budget, tax--have been very poor, as has been documented by many observers. According to the Heritage Foundation's index of economic freedom, Greece ranks 130 among the countries of the world, the worst policy performance in Europe and on a par with many poor sub-Saharan African countries. According the World Bank's Doing Business indicator, Greece ranks 61, which is well below Portugal, Italy, Spain, Ireland, Germany, and France; and on two important pro-growth measures in the World Bank's Doing Business indicator it ranks 155 on enforcing contracts and 116 on registering property. And, by yet another measure, the Fraser Institute's Index of Economic Freedom, Greece ranks 84 in the world." Statements, letters, and materials submitted for the record include those of the following: John B. Taylor and Robert Khan.

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