Sunday, May 6, 2012

Greece's Nightmare

A bonus post for today, given the deeply disturbing news about Greece. The New York Times reports the results of today's parliamentary elections: the rise of a neo-Nazi party, Golden Dawn, which received 5 to 8 percent of the vote, and a far-left coalition, Syriza, which won 15 to 17 percent. In other words, Brad deLong's live-blogging of the 1940s is suddenly confusable to for today's news.

Obviously, one need not wonder why. The politics is the predictable product of Greece's deteriorating economic circumstances. The graph above shows how the collapse of the Athens Stock Exchange index since 2007 has paralleled, to an eerie extent, that of the Dow Jones Industrial Average in 1929. (Statistical note: because the ASE index data is not publicly available, I used the Dow Jones Greece index, whose data is available here, which seems to copy the ASE exactly.)

1 comment:

  1. I posted yesterday about a few things the government could do to help employ more youth. Of course, all possible solutions need to have zero-cost. I proposed that the minimum wage be reduced. What do you think?

    http://potemkinreview.blogspot.com/2012/05/greece-has-nazi-problem.html

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