Greece Harvard Case Solution & Analysis

Greece Case Solution

Synopsis- Greece and the decision of IMF and E CB

The European crisis makes the major part of economic history and political collapse of weak counties of the European Union, most eminently Greece, whose economic cycle collapsed and left it in certain big public debts which were assumed to become bad debts if the high authority of EU,European central bank would not have intervened.

The role of European central bank has always been prominent and vital in maintaining the stability of prices and economies of the members by regulating the credit and monetary policies to increase the growth.European Central Bank put enough efforts to bring down the inflation rate and stabilize the economy in the yams of global financial crisis. The effect of the crisis imposed less effect on Ethan US, because, in order to counter the financial dilemma,European Central Bank regularized the monetary policies and loosened the credit facilities in the form of Trolls,in order to maintain the stability by offering long term helped economies to fight back the crisis and hence the impact was minimized.

However, in the case of Greece,a strong deadlock is present pertaining to the situation Greece and other European countries are facing and the intervention required by EUROPEAN CENTRAL BANK in order to retain the position of EU and its integrity, However, doing so, may lead to some sociopolitical and iconic issues, like the dependence of other weak countries on the EUROPEAN CENTRAL BANK if caught in Crisis, then this dependence may also lead to members not putting enough efforts to overcome debt-GDP ratio because they may feel that they have the back of European Central Bank even if they collapse in one run like Greece. Therefore,the support of EUROPEAN CENTRAL BANK to Greece is a big question. Let’s solve the question with the logical rationale by initially understanding the role of EUROPEAN CENTRAL BANK.

The Objectives of EUROPEAN CENTRAL Bank entail the maintenance of low and stable inflation in the EU, the regulation of monetary policy to balance the debt-GDP ratio and the stability of prove and currency against the dollar.Thus, any measure taken in account of Greece should be aligned with the above core objectives of EUROPEAN CENTRAL BANK.While these objectives compel European Central Bank’s number of options to regulate the monetary policy in EU, it also hinders the policies of the EU and EUROPEAN CENTRAL BANK in supporting the Greece public crisis.

Greece Harvard Case Solution & Analysis


EUROPEAN CENTRAL BANK has introduced number of programs in an action to reduce the inflation and public debt by achieving short-term loan programs in 2010 as well as long term projects to ensure and guarantee the members that EUROPEAN CENTRAL BANK takes care of them and will regularize the monetary policy in reaction of the financial crisis, however the question of Greece still remains unanswered...................

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