Greek Debt Recession and Austerity (part 1)

Learn more: http://www.khanacademy.org/video?v=9p...
A primer of why Greece is in a tough situation (more in future videos)

• Category

  Education

[ListWritingMachine]

Keynesian Economics*

[poopisnotpoop]

No. They went into debt when the economy was strong and then DECREASED spending when the economy went rough.

John Keynes was spinning in his grave.

In fact a healthy dose of Keynes may be just what Greece needed.

[poopisnotpoop]

I agree. They should have left the Eurozone.

[ariel delagarza]

This is not entirely true, the debt crisis was a long time coming and was primarily due to rising labour costs and an ineffective way to enact monetary policy. Although the ECB exists greece still has a central bank with i-rate targets and what not, so what they did to enact monetary policy was to buy and sell large amounts of debt inherently leading to unsustainable levels,. Greece needs to become competitive and become ruler of it's own currency again.

[fcblaugrana0]

Dear Austrian cult followers, please create your own country without pensions, hospitals, fire departments etc (or completely privatized ones). As for Greece, the deficit is a result of the bubble create by American and German speculators which burst in 2008. There is no choice but to default or have the deficit recycled by the ECB which can handle it.

[pitg21]

Κι όλα αυτά γιατί το ευρώ είναι ιερή αγελάδα και δεν μπορεί να υποτιμηθεί...

[sondos albosta]

i cant thank u enough for downloading this video,i have an assignment due tomorrow and i cant say how much ur video helped !

[Melanie Grace]

This is why the us congress should not be allowed to create deficit.

[Roino Flour]

Spending needs to increase. How would you feel if you payed twice the amount of taxes while everything cost 3 times expensive? There only needs to be cuts in certain areas. This debt crisis cant be fixed over a couple years, it has to be done over decades, especially when we're talking about a weak economy like Greece.

[pebre79]

can you do a video on the definition of a recession in the US?

[celtiberian]

The entire khan academy is, at least right now, keynesian to the bone. We need some austrian teachers there...