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Greece illustrates how the politics of lending can undermine its effectiveness

Chapman, Terrence, Fang, Songying, Stone, Randall, (2015), “Greece illustrates how the politics of lending can undermine its effectiveness”, Lse blog, 18 September

The summer of 2015 marked another period of high drama in the ongoing Greek debt crisis. Amidst continuing negotiations with lenders and European leaders, Greek citizens rejected austerity conditions requested in exchange for yet another bailout by the Troika of the European Commission, the European Central Bank, and the International Monetary Fund. Shortly after the referendum, the staunchly anti-austerity Greek finance minister Yanis Varoufakis resigned and Prime Minister Alexis Tsipras’ cabinet was reshuffled, ultimately leading to a call for new elections.

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