Since requesting financial assistance from European and international partners in 2010, Greece has been involved in three consecutive macroeconomic adjustment programmes negotiated with the Troika...Show moreSince requesting financial assistance from European and international partners in 2010, Greece has been involved in three consecutive macroeconomic adjustment programmes negotiated with the Troika of international institutions: the European Commission, the European Central Bank, and the International Monetary Fund. The European heads of states decided to provide the conditional assistance at the gatherings of the Euro Summit, an organisation where they also founded the Eurogroup and set conditions for Greece to start negotiations. After preparatory work by the Troika, the Eurogroup and the IMF shaped conditions and adopted decisions on the loan programmes. The Eurozone states, which contributed the majority of financing, channelled their financial assistance through the Greek Loan Facility, the European Financial Stability Facility, and the European Stability Mechanism. The IMF participated financially in the first two programmes, while remaining in stand-by in the third. Policy conditionality was specified in Memoranda of Understanding and formally adopted in Council Decisions adopted by the Council of the EU. It mainly consisted of Greece passing a number of austerity measures combined with specifically prescribed structural reform, a strategy based on the theory of expansionary austerity. The specific institutional rules and setup have given the international institution the power to shape Greece’s public spending and legislation in key areas such as labour, social field and more. Taking into account this impact and the consideration that institutions are the most important factors in the occurrence of poverty, while examining the theoretical and practical implications of austerity, this paper builds on the position proposed by Thomas Pogge that deliberate and predictable actions that lead to poverty can be deemed a violation of human rights. In particular, it explores whether the impacts of the conditionalities imposed on Greece by the mentioned international organisations can implicate their responsibility for the effect of their policies on the state of human rights in Greece, in particular the right to work and the right to social security.Show less
This thesis has conducted an analysis of economic policy by the Harding administration during the 1920-1921 depression. Free market economists have pointed to this episode in American history as...Show moreThis thesis has conducted an analysis of economic policy by the Harding administration during the 1920-1921 depression. Free market economists have pointed to this episode in American history as proof of the beneficial effects of laissez-faire fiscal and monetary policy during economic crises. This thesis has examined whether federal fiscal and monetary policy was in fact laissez-faire and what impact this had on economic recovery. First of all, trade policy was protectionist, though the Emergency Tariff was found to be too insignificant to impact the conclusions of this study. Taxation policy was decidedly laissez-faire as there were significant reductions in income-tax rates, the end of the Excess Profits tax and multiple smaller regressive taxes were lowered or scrapped. This thesis has found that taxation measures positively impacted economic recovery indirectly through the phenomenon of ‘regime certainty’. Furthermore, federal government spending was reduced substantially without negatively impacting economic growth. Government policy on wages, prices and unemployment was decidedly non-interventionist, resulting in substantially lower wages and prices. Finally, the Federal Reserve refrained from implementing any significant monetary stimulus, both through discount rate lowering or open market operations and the money supply decreased strongly throughout the crisis and economic recovery.Show less
