Category Archives: Economics in Brief

What is the real cost of the Greek crisis?

Dr. Periklis Gogas
Associate Professor



Nancy Dimitriadou


Department of Economics, Democritus University of Thrace

The Greek debt crisis led to an unprecedented reduction in the country’s real GDP by 26.5%. This recession is one of the largest crises that the world economy has ever seen. For comparison, the Great Depression in the US in the later 1920’s resulted in a GDP reduction between 25% to 30%. Moreover, the Great Depression lasted for four years, while the Greek crisis reaches almost 8.

Simply stating that Greeks lost 26.5% of their income paints a gruesome picture. The true impact of the crisis is even worse. We compare current Greek real GDP to the one in 2009 just before the crisis. By doing so we are not taking into account a very significant stylized fact of every economy: growth. All economies show a strong positive trend in their GDP time series. This is the result of a steady growth in the factors of production, i.e. human and physical capital. The available human-working-hours increase due to population growth and the amount of physical capital stock also increases over time as a result of investment in fixed capital. Last but certainly not least, an additional very important factor for continuous growth is the improvement in technology. Technology significantly increases the productivity of both human and physical capital.

Continue reading What is the real cost of the Greek crisis?

The Paradigm-Model of Corporate Culture



Dr, Theodore Scaltsas is professor of Philosophy,  University of Edinburgh


Mr Owen Kelly, OBE, Director of Engagement, Business School




Ms Shannon Chen, Postgraduate Researcher, Philosophy



University of Edinburgh, Scoltland


Everybody wants to put more accountability into business; but this seems much easier said than done. For example, David Rock summarizes three different attempts to introduce values in corporate personnel behavior, and laments their lack of success by attributing the shortcomings to the innate complexity, if not irrationality, of human decision making (‘The Business of Values’). We take a more upbeat stance on human nature here, believing that society and its institutions can be guided by values – there is ample evidence of this among developing and developed cultures, and we do not think there is anything making us unfit for it.

Is, then, our current, less-than-ethical corporate behaviour a riddle that defies explanation? If we are capable of value-guided behaviour, why don’t we practice it in corporate environments? We believe there is an explanation for this. Personal and social values are built into our character, as Aristotle explained; they are acquired by training and habituation in early age, and exhibit themselves in our dispositions to feel, to decide, and to act in accordance with them. This is what Binta Niambi Brown discovered, when she felt impelled to disclose to her client crucial information that emerged just as the deal was being struck; “Even if the deal had been blown up for good, honest reasons rooted in decent integrity and morality” disposed her to reveal the information.

Continue reading The Paradigm-Model of Corporate Culture

Greek NPL’s: Is there light at the end of the tunnel?

Dr. Periklis Gogas Associate Professor


Dimitrios Karagiozis

Ph.D. Candidate

Department of Economics Democritus University of Thrace, Greece


The year 2018 is a milestone for Greece, as it moves towards to the completion of the third economic adjustment program. That means that after the official end of the program in August 2018, Greece must take fate into its own hands, and try to borrow from the markets to meet its future debt obligations. As the country leaves behind the 8-year long memorandum era, the two main concerns for the Greek government and the banking sector are: a) a decision on the debt relief measures that should follow and b) a solution to the Non-Performing Loans (NPL’s) problem.

The International Monetary Fund openly declares what anyone with basic training in economics can see: Greece requires substantial debt relief from its European partners to restore debt sustainability. The main issue here is that the resolution of this problem mainly depends on political decisions from Greece’s EU partners that are hard to sell to their voters-tax payers. This is of outmost importance for the medium to long term stability of the Greek economy. On the other hand, the NPL’s problem is urgent and imperative.

Continue reading Greek NPL’s: Is there light at the end of the tunnel?